CRS & FATCA Compliance Software | FICO TONBELLER

Implementing CRS and FATCA Effectively and Efficiently

With the Foreign Account Tax Compliance Act (FATCA) that came into force in 2010, the U.S. government aims at the disclosure of assets of taxable U.S. citizens at financial service providers abroad. So-called Foreign Financial Institutions (FFIs) are requested to support the investigation based on intergovernmental agreements (IGA) or agreements between the financial institutions and the U.S. tax authority (IRS).

FATCA has had enormous international impact. As of 2017, cross-border tax evasion will be further restricted through automatic exchange of information between tax authorities (Automatic Exchange of Information – AEOI). The AEOI regime that OECD has prepared in collaboration with the G20 states consists of two parts: common reporting and due-diligence concerning the information on financial accounts (Common Reporting Standard – CRS) and a model for bilateral or multilateral intergovernmental agreements that will serve as the basis for the exchange of taxpayer data between these states (Model Competent Authority Agreement – CAA). The financial institutions of the signatory states are obliged to identify the accounts of private persons and companies residing for tax in one of these countries.

The key to tax compliance lies in a flexible and easily adaptable software solution which largely automates the compliance process and efficiently implements the various identification, classification and reporting requirements in a future-proof way.