Automatic Exchange of Information

Automatic Exchange of Information

Supporting clients’ efforts to prepare, achieve and maintain compliance with AEOI requirements

Supporting clients’ efforts to prepare, achieve and maintain compliance with...

Overview

Aiming to reduce tax evasion through transparency, the Common Reporting Standard (CRS) builds on the US Foreign Account Tax Compliance Act (FATCA) and UK Intergovernmental Agreement (UK IGA), collectively AEOI, to take another step towards a globally coordinated approach to the automatic exchange of financial account information of non-resident customers and investors.

This means that financial institutions around the globe are faced with significant additional identification and reporting responsibilities, which may vary in detail and timing by jurisdiction. Crucially, they need to be able to collect and track complex, varied customer information quickly and easily to report domestically in each jurisdiction where they operate. There are both reputational and financial risks to getting AEOI wrong.

The ambitious time frame to be compliant is stretching resources and the lack of clear guidance means organisations have no certainty – much less consistency – in how the rules will apply across all of their operating markets. Many organisations are now struggling to understand how they should prepare for AEOI.

To move forward with confidence in the midst of uncertainty, KPMG has developed a suite of services to support clients’ compliance with evolving rule sets across and within jurisdictions. KPMG’s tools offer a blend of technology based services, tax technical advice, communications and training methods.

KPMG AEOI Reporting

KPMG AEOI Reporting is designed to provide a simple and effective method of taking a Financial Institution's core data on reportable accounts (in excel or CSV format) and generating the AEOI reporting to the relevant Tax Authority. There are two options for the use of KPMG AEOI Reporting:

Please contact Darren Anton if you would like to have a demonstration of the software.

Features of KPMG AEOI Reporting

  • The tool is designed to simplify the reporting process as it:
  • Allows reporting to be completed under FATCA or CRS.
  • Runs Scheme validation checks in real-time to ensure that your report will be accepted - this includes the verification of tax reference numbers for reportable accounts.
  • Provides an easy to review report to allow efficient checking of data prior to reporting.
  • Manages different customer classifications across multiple reporting regimes.

Additional features of the licencing option:

  • Removes the need for users to understand XML.
  • Logs data changes for audit/control purposes.
  • Allows users to manually correct errors directly in software.
  • Training/technical support helpdesk available for no extra cost.
  • Can support multiple Financial Institutions across a single organisation.
  • Provides an easy to use solution which is designed to not compromise data security.
  • Allows management to view the current status of AEOI reporting across all Financial Institutions.

Other AEOI services

KPMG are able to provide a number of other AEOI services including:

  • Ad hoc advice in relation to the particular AEOI requirements of a jurisdiction. For example, we are able to help you determine whether an FI which is centrally managed and controlled in one jurisdiction but incorporated in another jurisdiction is able to meet its AEOI requirements by filing in just one jurisdiction.
  • Agreed upon procedures to ensure that all AEOI reporting was complete and accurate. This can include a sample check of the data reported and a review of how the reportable accounts were identified.
  • Health check of the AEOI procedures introduced. Once AEOI procedures are incorporated into ‘business as usual’, KPMG can review the procedures to ensure that they are sufficient to meet all AEOI obligations before then testing the implementation of the procedures to ensure that they are operating as intended.
  • Independent review of the AEOI procedures to provide assurance to a particular client that their data has been properly reported.

The above list is not considered to be an exhaustive list of all AEOI services which can be provided by KPMG. Please contact Darren Anton should you wish to consider any AEOI services.

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