Tax Information Exchange
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.
Utmost Worldwide is therefore subject to tax information exchange legislation in Guernsey and other jurisdictions in which it operates.
This means that the law requires Utmost 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, Utmost 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 Utmost Worldwide and that the mandatory disclosure of information
by Utmost 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.
Utmost 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
Utmost Worldwide Limited,
St Peter Port,
Channel Islands GY1 4PA.
T +44 (0) 1481 715 400
F +44 (0) 1481 715 390