While AEOI is not new, the push to exchange more information has recently become more global in scope.
KPMG Kuwait helps make global information reporting manageable
While AEOI is not new, the push to exchange more information has recently become more global in scope. Aiming to reduce tax evasion through transparency, OECD’s Common Reporting Standard (CRS) builds on the US Foreign Account Tax Compliance Act (FATCA) to take another step towards a globally coordinated approach to the automatic exchange of financial account information of non-resident customers and investors.
How we can help:
KPMG Kuwait helps make global information reporting manageable. AEOI involves the systematic transmission of large amounts of information (such as investment income) from the tax administration where the account is held to the tax administration where the taxpayer is resident. The resident tax administration can then verify whether the taxpayer has accurately reported income.
This means that financial institutions around the world are facing significant additional identification and reporting responsibilities, which may vary in detail and timing. They need to be able to collect and track complex, varied customer information quickly and easily in each jurisdiction where they operate. There are both reputational and financial risks to getting AEOI wrong.
The ambitious compliance period is stretching resources. The lack of clear guidance means organizations have no certainty – much less consistency – in how the rules will apply across all of their operating markets. Many organizations are now struggling to understand how they should prepare for AEOI.
To move forward with confidence in the midst of uncertainty, KPMG Kuwait has developed a suite of services to support clients’ compliance with evolving rule sets across and within jurisdictions. KPMG Kuwait’s tools offer a blend of technology based services, project accelerators, tax technical advice, communications and training methods, and process and control planning.
KPMG's teams of highly experienced professionals include former regulators, tax authorities and industry executives that have helped develop model IGA agreements, negotiated bilateral and multilateral instruments and drafted regulatory guidance. The teams are in regular dialogue with tax authorities and local government officials and are active contributors on a number of advisory and industry committees