Financial institutions face ever-increasing obligations with regards to tax reporting between jurisdictions. Ensuring compliance with the Common Reporting Standard (“CRS”) and Foreign Account Tax Compliance (“FATCA”) legislation in the US and the UK can be time-consuming.
US FATCA requires non-US financial institutions to report to the US Internal Revenue Service details of accounts held by US citizens or taxpayers. UK FATCA is similar regulation that requires financial institutions in the Crown Dependencies and Overseas Territories to report on accounts they hold for the benefit of UK tax residents. The goal of the FATCA regulatory regimes is to identify those who may be evading tax in their home countries.
The CRS is a global standard for reporting such information. The CRS allows tax authorities to gain a clearer understanding of financial assets held abroad by their residents. The US and UK FATCA legislation and the CRS are collectively known as Automatic Exchange of Information (AEoI).
Conyers’ lawyers and fiduciaries can help you reduce the potentially serious commercial, reputational and financial risks of non-compliance with FATCA and CRS reporting obligations and assist with preparation of tax documentation.
Our purpose is to help clients pursue the right legal, financial and commercial paths. To help you make the right choices for your individual needs, or to learn more about our jurisdictions, contact one of our professionals today.