A complete and international solution for FATCA and CRS
The Foreign Account Tax Compliance Act (FATCA) took effect in 2014 in the United States. It applies to all Foreign Financial Institution (FFIs) both within and outside the Unites States, irrespective of whether they transact in US Dollars, have US investors or own US portfolio companies.
FATCA is transposed into the law of most developed countries under Inter Governmental Agreements (IGAs) and so is a legal requirement for fund boards. FATCA is a four stage process and we can undertake all or part of the process for you. We use investor data captured through the USQ to drive the process.
Common Reporting Standard (CRS)
CRS is a global version of the US Foreign Account Tax Compliance Act (FATCA) and draws extensively on the intergovernmental approach to the implementation of the (FATCA), and, similar to FATCA, CRS requires financial institutions resident in participating jurisdictions to implement due diligence procedures, to document and identify reportable accounts, and to establish a wide-ranging reporting process.
CRS went live on 1 January 2016 when early adopter countries started to gather data so that they can report this to tax authorities in 2017.
CRS imposes obligations on Financial Institutions to:
1. Collect information to establish their customers’ country of tax residence
2. Report account holder information to their local tax authorities who will then exchange this information with the tax authorities of countries where the account holder is resident.
More than 100 countries have indicated they will adopt CRS and more than 50 of these have signed up to automatically exchange information on customers that are tax resident in co-signatory jurisdictions. We are ready to undertake all or part of the CRS process, reporting account holder information to the relevant local tax authority.
We have extended our tried and tested FATCA process and technology to CRS.