Data Sharing Under FATCA and CRS Regulations

Foreign Account Tax Compliance Act (FATCA) is a US regulation in effect since 1 July 2014. Its aim is to prevent US persons using offshore accounts from evading US taxation. The US has partnered with over 150 countries by signing Intergovernmental Agreements (IGA) that require such countries’ local financial institutions to identify accounts held by US persons. Information relating to such accounts is ultimately exchanged with the US Internal Revenue Service.

Common Reporting Standard (CRS) is a global initiative lead by the OECD. Its aim is to prevent individuals and entities using offshore accounts from evading taxation in participating countries. As of now, over 100 countries are committed to participate in the CRS initiative via Automatic Exchange. They are legislating domestic laws that require local financial institutions (FIs) to identify accounts held by foreign tax residents, and report details of such accounts to local tax authorities, who will automatically exchange this information with the tax authorities of other countries participating in the CRS initiative.

The clients need to submit their FATCA and CRS self-declarations to Walletory. Some (mostly corporate) clients may need to provide additional FATCA-related self-declarations for their US beneficial owner(s) and/or CRS-related self-declarations of their controlling persons.

The clients need to inform Walletory and provide an updated self-declaration within 30 days of any change in circumstance which may affect their tax residency status or may inundate the information contained in self-declaration previously submitted to Walletory.

The client is required to provide supporting documents to Walletory for the verification of the information contained in their self-certifications.

The information collected may be shared with the relevant tax authorities as part of FATCA and CRS reporting obligations, and in response to a specific request from the tax authority.

The clients need to ensure that accurate information is provided in their self- certifications since the tax authorities may penalize the clients for making an incorrect declaration either willfully or due to negligence.

Walletory appreciates the continued support and patronage of all clients. We are happy to provide non-tax related guidance to clients that may be of assistance to prepare and submit the self-certifications. Please note that Walletory does not provide any form of tax advice. The clients should contact their own tax adviser if any tax-related advice is required.

The clients may contact us regarding FATCA and CRS questions via: compliance@walletory.com