Questions about FATCA compliance?
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It is estimated that tax avoidance by US citizens and entities using offshore bank accounts and other vehicles held at foreign financial institutions (FFIs) is costing the US government around $500 billion a year. Under the US Foreign Account Tax Compliance Act (FATCA) rules, which went into effect on January 1, 2013, all FFIs are now required to collect, manage and report all information that could reasonably point to individual’s liability for US taxation to the Internal Revenue Service (IRS) – a process estimated to cost foreign banks, with more than 25 million accounts, at least US $250 million (US $10 per account) to implement, according to the European Banking Federation and the Institute of International Bankers.
Recently, Thomson Reuters launched a solution to help institutions fulfill and comply with their obligations under FATCA. A combined effort between our Governance, Risk & Compliance, and Tax & Accounting businesses, the Thomson Reuters for FATCA Solution, brings together market leading technology already widely used by organizations around the world to solve issues with regulatory compliance, tax documentation and tax reporting. It will enable organizations to identify, maintain and validate their customer records to assist in FATCA compliance.
The impact of FATCA will be widely felt across the financial industry with banks, investment funds, insurance companies, mutual funds, broker-dealers, custodians, intermediaries, and private equity firms all having to comply. Visit the Thomson Reuters FATCA website for more information on FATCA and the solutions available to assist in compliance.
Read the Informer Magazine special feature on FATCA.
Watch GRC Senior Regulatory Intelligence Expert Susannah Hammond explain what the Foreign Account Tax Compliance Act (FATCA) is and why UK companies need to care.
Earlier this year Thomson Reuters surveyed the industry on FATCA preparedness. The survey covered nearly 200 compliance, risk, audit and legal practitioners from firms across Europe, the Americas, Australasia, Asia, Africa and the Middle East. Read the full report and benchmark your operations.