More FATCA self certification

Definition of Controlling Person

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If you should conclude that, on your FATCA self-certification, you should state that you are a "Passive Non-Financial Entity", then you are also required to provide details of controlling persons.

For this purpose, where the entity is a limited company with just one class of (ordinary) shares, 50 issued, of which 35 are held by individual 'W' and 15 are held by individual 'H' where H and W are a married couple, is 'H' deemed to be a "controlling person", perhaps by reason of attributable voting rights of 'W'?

I could not find anything in HMRC manuals on this.  Closest I got was IEIM403480 here

https://www.gov.uk/hmrc-internal-manuals/international-exchange-of-infor...

But it did not commit, nor link to anywhere else for more detail.

With kind regards

Clint Westwood.

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By cheekychappy
13th Jul 2016 15:20

Controlling person.
Synonym: Wife.

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By jndavs
13th Jul 2016 16:34

Guidance on filling out the CRS:

Controlling Person
For an Entity that is a legal person, the term Controlling Person means the natural person(s) who exercises a controlling interest (‘control’) over the Entity.

Determining control will depend on the legal structure of the Entity. Control over an Entity may be exercised through direct or indirect ownership or if no such person(s) exists, then by any natural person(s) that otherwise exercises control over the management of the Entity (for example,the senior managing official of the company).

For companies, Controlling Persons include any natural person that holds directly or indirectly more than 25 percent of the shares or voting rights of an Entity as a beneficial owner. In some countries this percentage may be a lower figure.

In the case of a partnership and similar arrangements, Controlling Person means, consistent with “beneficial owner” in anti-Money Laundering regulations, any natural person who exercises control through direct or indirect ownership of the capital or profits of the partnership, voting rights in the partnership, or who otherwise exercises control over the management of the partnership or similar arrangement.

In the case of a trust (and Entities equivalent to trusts), the term Controlling Persons means the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust.

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By Portia Nina Levin
18th Jul 2016 13:04

Apparently, I can be quite a controlling person.

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