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July 17, 2014
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Re: FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”)
ELANY has been asked if implementation of the “FATCA” law (federal law), which is scheduled
to go into effect
under transition rules as of July 1, 2014, will have any effect on the filing and compliance process
for excess line
transactions with ELANY whether online or by paper filings.
“FATCA” will have no impact nor cause any changes to filing excess line transactions
with ELANY or
compliance with New York excess line law.
“FATCA” is a tax law, which may impact excess line policies procured from alien insurers.
The alien insurer must
be able to demonstrate “FATCA” compliance or the excess line broker, as the withholding
agent, must retain 30%
of the premium if the alien insurer, alien broker, or intermediary (where applicable) is not “FATCA”
compliant.
ELANY has asked listed alien insurers to identify a company contact person, or provide information on
their
websites, who will provide documentation to excess line brokers to demonstrate that they are “FATCA”
compliant.
Lloyd’s has announced that it will be treated as a “Qualified Intermediary” assuming
primary withholding and
reporting responsibility for premium paid to Lloyd’s syndicates. A single form W-8IMY will
be issued for Lloyd’s
and participating syndicates.
A separate “FATCA” compliance document will be needed for intermediaries including brokers,
coverholders
and/or service companies.
NAPSLO, CIAB and AAMGA, among others, have published extensive materials regarding “FATCA”.
For more detailed information on “FATCA” please visit the IRS's FATCA webpage
at
(
http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA
). Additionally, copies of
FATCA Tax Forms and Instructions can be found at:
http://www.irs.gov/Businesses/Corporations/FATCA-Related-Forms
.
All current ELANY bulletins and other current ELANY publications can be found on our website at
http://www.elany.org
.
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phone 646-292-5500 |