GLOBAL TAX REPORTING
To combat tax evasion, U.S. Foreign Authority Tax Compliance Act (FATCA) regulations have significantly increased tax compliance complexity for financial institutions (FI) with deposit taking, wealth management, and custody footprints worldwide. FIs must perform enhanced customer-account due-diligence and report to the U.S. Internal Revenue Service (IRS) or to their local tax authorities.
FATCA reporting encompasses onshore and offshore reporting obligations and requires FIs to comply with Inter-Governmental Agreement (IGA) reporting formats including IGA1 and IGA2 and is separate from similar obligations FIs may have under the Common Reporting Standard (CRS).
CHALLENGES
- Extracting and aggregating customer account data from multiple sources and different formats from across the enterprise
- Performing accurate, timely customer due diligence
- Monitoring, interpreting, and managing complex reporting requirements
- Correctly classifying and determining customer account eligibility
Questions to Consider
- Do our current know-your-client (KYC) and know-your-account (KYA) methodologies enable us to classify accounts accurately?
- Does our data management and reporting approach adequately protect personally identifiable information (PII)?
- Are we prepared to address regulatory requirements to clean up undocumented accounts?
- How concerned are we about tax implications of wrong account classifications?
- Do we have the capability to correctly identify eligible client accounts efficiently and to perform accurate and on-time due diligence?
- Have we eliminated our reliance upon spreadsheets and manual processes to collect and handle required data?
- Are we able to extract and aggregate data from multiple sources in different formats?
- Are we able to accurately validate customer account data from various divisions?
END-TO-END FATCA AND CRS SOLUTION
AxiomSL’s data- driven, automated, scalable solution on ControllerView empowers FIs to meet their FATCA compliance requirements and manage CRS reporting on a single platform.
Powered by TaxView, AxiomSL’s extensible data-dictionary methodology, the solution’s eligibility engine enables FIs to map volumes of diverse source data from across silos to FATCA classification specifications.
Deployable on-premises or via AxiomSL’s secure RegCloud, the solution’s inherent data and process transparency and dashboard accessibility enable FIs to monitor, analyze, validate, and sign-off on submissions that accommodate each jurisdiction’s requirements.
CAPABILITIES
- Enables centralized vs. branch reporting and unified submissions
- Enables precise data drill-down transparency and lineage
- Deploys on-premises or via AxiomSL’s secure RegCloud
- Delivers granular exception management functionality
- Performs comprehensive validation checks
- Handles tax-authority feedback and voluntary resubmission via a comprehensive refilling/correction capability
- Classifies accounts and identifies eligibility leveraging the TaxView data dictionary
- Provides user-friendly business process, summary and sign-off dashboards
- Generates XML reports per IRS or local tax authority requirements
A Single Ecosystem for FATCA and CRS Tax Reporting
Leaverage an integrated solution addresses both CRS and FATCA requirements in the areas of client classification and reporting.
Click image to view at full size
FATCA and CRS
7 Social Distancing Ideas For Regulatory Reporting In The Cloud
How taking the right approach to regulatory reporting in the cloud gives you a clean bill...
FATCA: Cinderella’s Slipper – Make Sure the Format Fits
In 2014, Singapore entered into an International Agreement with the United States for FATCA reporting...
Global Shareholding Disclosures: Comply with Confidence
Related links: The Investment Management Landscape is Changing… And Pressures On Global Shareholding Disclosures Are...
Taking The Temperature – A CRS Health-Check
In “Taking the Temperature ― A CRS Health-Check,” AxiomSL explores three areas that are central...