The first significant step toward international reporting started with the US implementing the Foreign Account Tax Compliance Act (FATCA).
This will be followed by the UK enacting CDOT (Crown Dependencies and Overseas Territories) reporting, commonly referred to as UK FATCA, with reporting starting in 2016.
CRS (Common Reporting Standards) will represent the final step toward full transparency by facilitating the reciprocal exchange of account information between countries throughout the world resulting in a substantial increase in complexity.
With the enactment of the Foreign Account Tax Compliance Act (FATCA), the United States wishes to ensure that all accounts held abroad by US taxpayers can actually be taxed. FATCA is a unilateral set of US regulations that applies worldwide for all countries. It requires foreign financial institutions to disclose information on US accounts to the IRS. Our solutions support all types of financial institutions and models, IDES and most country specific schemas and portals.
Financial institutions in Jersey, Guernsey and the Isle of Man (the Crown Dependencies) and the Overseas Territories of Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Montserrat and the Turks and Caicos Islands (the Overseas Territories) will automatically provide information relating to the financial affairs of UK resident clients in respect of 2014 onwards. This is sometimes referred to as 'UK FATCA', as it is based on the US's FATCA regime.
The Common Reporting Standard (CRS), formally referred to as the Standard for Automatic Exchange of Financial Account Information (AEoI), is the result of the drive by the G20 nations to develop a global standard for the automatic exchange of financial account information. Developed by the OECD, the CRS aims to maximise efficiency and reduce costs for financial institutions by drawing heavily on the approach taken to implementing FATCA, becoming the information standard for the automatic exchange of information