WHAY DOES IMY MEAN SERIES

Since the regulations are cascade in nature, there’s also a benefit for the presenter of the W-8BEN too. The upstream party is essentially leveraging the probable ignorance of its customers. The reason why this might happen is clear: if you’re dealing with a client and they give you a W-8BEN, the consequential disclosure, withholding and reporting obligations pretty much disappear. I’ve now been told anecdotally quite a number of times in my travels that upstream counter-parties preferred a W-8BEN. The second and more serious cause is abuse of the regulations.

WHAY DOES IMY MEAN SERIES

That’s not uncommon and the W-8 series was already complex enough before it was re-tooled to handle Chapter 3 and Chapter 4 issues together.

The first is ignorance: they may just not have been aware. Why would financial intermediaries have certified with a BEN when they were clearly not beneficial owners? There are two possibilities. However, it is emerging that these financial firms are getting GIINs to certify that they are an intermediary under IRC Chapter 4, then realising that their previous W-8 submission to their counter-party was a W-8BEN, which certifies that they were a beneficial owner under IRC Chapter 3. Under the pressure of the Chapter 4 anti tax evasion rules, these firms are applying for GIINs (Global Intermediary Identification Numbers). However, the form they are requesting, one of the W-8 series of US tax forms, also has a Chapter 3 purpose. Under FATCA all financial intermediaries globally are being forced to document their Chapter 4 (FATCA) status by their upstream counter-parties (QIs or US Withholding agents). The latest, ironically, has come to light as a direct result of FATCA. Despite it being 14 years since these regulations came in, problems keep coming out of the woodwork. While everyone is still running around worrying about FATCA and its children, CRS and AEoI, the US Chapter 3 tax regulations still need to be handled.

Whay does imy mean