Explanatory Note – CRS Reporting Obligations TIN

Summary

This is DITC guidance explaining how Cayman Islands Reporting Financial Institutions (RFIs) must handle Tax Identification Numbers (TINs) when filing CRS reports. It clarifies that, despite the CRS XML Schema labelling the TIN field as "(Optional) Mandatory," reporting a TIN is not discretionary — it is required in nearly all cases, with only narrow exceptions where a jurisdiction does not issue a TIN or does not require its collection under domestic law.

• New Accounts (opened on or after 1 January 2016): The TIN must be collected at account opening via self-certification.
• Pre-existing Accounts (held as of 31 December 2015): The TIN must be reported if already on file, or otherwise pursued through documented "reasonable efforts" made at least annually until obtained or excused.

RFIs are directed to use the OECD's AEOI Portal (or another reliable source) to verify claimed exceptions to TIN collection/reporting. The guidance warns that failure to report a required TIN is an offence under the CRS Regulations and can result in an administrative penalty, and notes that the Tax Information Authority may request evidence of the reasonable efforts undertaken where a Pre-existing Account is reported without a TIN. Two flowcharts are included to help RFIs determine, for New and Pre-existing Accounts respectively, whether a TIN must be reported.

Key obligations

• Report the TIN for all Reportable Persons (Account Holders and Controlling Persons) and for Entity Account Holders where one or more Controlling Persons are Reportable Persons, except in the limited permitted circumstances.
• For New Accounts opened on or after 1 January 2016, collect the TIN or functional equivalent at account opening via self-certification, unless the Reportable Jurisdiction does not issue a TIN or its domestic law does not require its collection.
• Where an Account Holder claims an exception to TIN collection, verify the claim against the OECD's AEOI Portal or another reliable source before accepting it.
• For Pre-existing Accounts (held as of 31 December 2015), report the TIN if it is already in the RFI's records.
• Where the TIN for a Pre-existing Account is not in records, use reasonable efforts (genuine attempts made at least once per year from identification as a Reportable Account) to obtain it, by the end of the second calendar year following the year the account was identified as a Reportable Account, unless an exception applies with reasonable certainty.
• Retain documentation evidencing the reasonable efforts undertaken to obtain a missing TIN, as the Tax Information Authority may request to review it.
• Ensure TINs are reported accurately to avoid committing an offence under the CRS Regulations, which may result in an administrative penalty.

Applies to

Reporting Financial Institutions

Deadlines

• by the end of the second calendar year following the year in which the account was identified as a Reportable Account: Deadline for a Reporting Financial Institution to use reasonable efforts to obtain a missing TIN for a Pre-existing Account.
• at least once per year starting from identification of the account as a Reportable Account: Minimum frequency of genuine attempts ("reasonable efforts") to obtain a missing TIN for Pre-existing Accounts.