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FATCA and CRS Services

FATCA and CRS Services

The US Foreign Account Tax Compliance Act and the EU’s Common Reporting Standard are two global standards for the automatic exchange of financial account information which impacts on the information gathered from every investor and account holder.

If you have a reporting requirement you must report annually or run the risk of penalties.

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FATCA and CRS: What are they and who needs to comply?

FATCA Services

The Foreign Account Tax Compliance Act

What is FATCA?

FATCA is a US law aimed at reducing tax evasion by US citizens and residents through the use of offshore assets and accounts.

FATCA requires reporting on two items:

  • US taxpayers must report on certain foreign financial accounts and offshore assets
  • Foreign Financial Institutions (FFIs) must report on financial accounts held by U.S. taxpayer or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

If FFIs do not comply with FATCA they will be subject to a 30% withholding tax penalty on certain US sources of income.

With extensive understanding of both US tax requirements and local regulations elsewhere in the world, WestBayFG is perfectly placed to assist with FATCA compliance.

Services include:

  • Classifying your corporate and account structures to determine FATCA status,
  • Registering your FFI with the IRS and obtaining your Global Intermediary Identification Number (GIIN),
  • Performing detailed due diligence reviews to determine “US accounts”,
  • Contacting existing investors where there is insufficient data to determine US status, and
  • Reporting on all accounts deemed to be held by a US person or entity, as well as those accounts whose status cannot be determined.

CRS Services

Common Reporting Standard

Helping you meet your reporting obligations

CRS is a set of global standards for the automatic exchange of financial account information which impacts on the information gathered from every investor and account holder.

CRS is designed to support and give effect to the Automatic Exchange of Information (AEOI) which is a globally coordinated standard inhibiting offshore tax avoidance and evasion; it does however mean that there is a major increase in reporting requirements.

WestBayFG can help assist in making this process hassle free and help funds prepare to comply with CRS obligations.

Services include:

  • Applying new account opening procedures,
  • Performing detailed due diligence reviews to determine single and multiple tax residencies,
  • Contacting pre-existing investors where there is insufficient data to determine tax residency, and
  • Reporting on all accounts held by a reportable individual or entity (plus accounts that are classified as undocumented).