International Tax Compliance
OECD and CD Tax Compliance
The US FATCA legislation is due to come into force on the 1st July 2014, and is expected to raise income for the US government by collecting previously avoided US-owed tax from American taxpayers and entities from accounts held outside the US.
The onus is placed on the foreign financial institutions themselves to declare to the US government (IRS) the awareness of such funds and also start a line of communication with its customers who appear to be in such circumstances.
It should come as no surprise therefore that governments from other countries will also soon be following-suit and creating their own versions of the FATCA legislation and entering into IGA's (Inter-Governmental Agreements) with other foreign governments to ensure there is no facility for residents of any country being able to store monies in off-shore accounts to avoid paying tax.
The first of these sees the UK government creating agreements with its crown dependencies (CD); Jersey, Guernsey, and the Isle of Man in the first instance. These come into force on 1st January 2015. Subsequent agreements with other CD's are complete, being made, or expected to be made with the likes of Gibraltar, Cayman Islands, etc. with similar tight-deadlines.
At the same time key European nations are entering into IGA's and agreeing dates of implementation under the OECD (Organisation for Economic Co-operation and Development).This wider "OECD FATCA" project whilst only published on the 14th February 2014 has already been endorsed by the G20 countries. The UK, France, Germany, Italy and Spain have already signed-up to this multilateral exchange of tax-based information. This clearly is the shape-of-things to come, and heralds a new age of international tax clarity, making it more difficult for high-profile cases of tax avoidance to be so prevalent.
How can EDQ Solutions help with this?Oracle Enterprise Data Quality (OEDQ) has been used as the platform of choice for a number a global financial institutions who have been keen to be compliant with US FATCA.
OEDQ's matching capabilities and ability to process large quantities of data (including non-Latin character sets) make it ideal for determining whether the key defined indicia are apparent in any of the institution’s customer records.
From there, OEDQ’s embedded Case Management application and advanced Workflow engine can assist in reducing operational costs by integrating business intelligence into the overall design.
The overall result is a highly performing, well-architected, and practical easy-to-use solution.
If you would like to find out more about how EDQ Solutions can help your business Contact Us today.