Industry updates, additional information on reporting frameworks and product updates.
Navigating FATCA and CRS reporting can be a complex and intricate process prone to errors. Earlier this year, the Jersey Government published a paper on common errors found in the 2022 CRS and FATCA submissions. Delving into the errors of 2022 and other common pitfalls, this article provides guidance and explains how software can play a crucial role in avoiding these costly mistakes.
Regulatory reporting plays a pivotal role in the finance industry and provides transparency, efficacy and integrity across different markets and their stakeholders. This article provides an in-depth look at the regulatory reporting process, its requirements and frameworks and how to avoid common mistakes to improve the regulatory reporting process.
In an era of increased cooperation between worldwide tax authorities, the automatic exchange of information (AEOI) requires financial institutions like banks, insurance companies, trust companies and stockbrokers to report client information to their local tax authority using the appropriate reporting schema. This provides the monitoring bodies with information on the activities and tax compliance of the jurisdictions and their tax resident companies and citizens. CRS & FATCA are two reporting schemas that aim to improve tax transparency and help promote tax compliance by ensuring financial jurisdictions gather and report sufficient information on their clients to the agreed reporting standards. FATCA applies to the United States whilst CRS applies to 120 worldwide reporting jurisdictions.
The CRS requires financial institutions and entities to identify and report certain information about their account holders to the tax authorities in the jurisdiction where the account holder is a resident. The reported information includes the account holder's name, address, and tax identification number, as well as the account balance and any income generated by the account.
These penalties can have a severe impact on a company's reputation, financial health, and ability to operate. Therefore, it is essential for financial institutions and entities to understand their obligations under these regulations and to take the necessary steps to comply with them.
The Foreign Account Tax Compliance Act (FATCA) is a U.S. law that was enacted in 2010 to combat tax evasion by U.S. taxpayers who hold financial assets outside of the United States. The law requires foreign financial institutions and entities to report certain information about their U.S. account holders to the Internal Revenue Service (IRS). This includes information such as the account holder's name, address, and tax identification number, as well as the account balance and any income generated by the account.
Get in touch with a member of our team to discover more about ReportGenie and start streamlining the reporting process.
