In recent years, and following the introduction of the Foreign Account Tax Compliance Act ("FATCA") by the US government, the international community led by the Organisation for Economic Co-Operation and Development (OECD) has been working towards establishing a framework of domestic laws and international agreements that will establish a Common Reporting Standard ("CRS") to facilitate the automatic disclosure of financial information held by banks, insurance companies and other financial institutions to domestic tax authorities, and for the exchange of that information to take place internationally between tax authorities for the purposes of identifying and deterring illegal tax evasion. The framework for this international exchange of tax information has been agreed by the OECD and implementation is being carried out by all the major jurisdictions around the globe. The exchange of tax information between Guernsey and the US commenced in 2015 under FATCA, and between Guernsey and the UK in 2016. Tax information exchange between Guernsey and other countries will commence in 2017 under the CRS timetable set by the OECD.
Generali Worldwide is therefore subject to tax information exchange legislation in Guernsey and other jurisdictions in which it operates. This means that the law requires Generali Worldwide to disclose certain data and financial information of policyholders and their associated parties at least annually to local tax authorities which may in turn share that information internationally with other tax authorities in a relevant jurisdiction. Furthermore, Generali Worldwide is required to obtain and maintain information from all policyholders and their associated parties in respect of their citizenship, residence for tax purposes and corresponding tax identification numbers (TIN) or an equivalent tax identifier reference where applicable. This information must also be periodically kept up to date. Policyholders and their associated parties are expected to co-operate with requests for information relating to international tax compliance as failure to do so may adversely affect their respective tax liabilities.
It should be noted that the same obligations relating to international tax compliance apply to all banks, insurance companies and other financial institutions that operate in the same jurisdictions as Generali Worldwide and that the mandatory disclosure of information by Generali Worldwide or any other financial institution in accordance with tax information exchange laws or the associated international guidelines does not breach applicable Data Protection Law or any other actual or implied obligation or duty of confidentiality.
Generali Worldwide cannot provide tax advice but should you have any queries regarding the operation of tax information exchange arrangements under FATCA or CRS, or other related international tax compliance issues, please contact our Head Office at the following address:
Generali Worldwide Insurance Company Limited,
St Peter Port,
Channel Islands GY1 4PA.
T +44 (0) 1481 715 400
F +44 (0) 1481 715 390