Trésorier/Treasurer magazine - N°85 - April/May/June 2014 - (Page 6)

ONLINE FR/EN Lux News VERSION Financial News LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°85 - APR / MAY / JUN 2014 OECD Common Reporting Standard: A global FATCA-like regime 6 In February 2014, the Organization for Economic Co-operation and Development (OECD) released a new single standard for automatic exchange of information entitled Standard for Automatic Exchange of Financial Account Information - Common Reporting Standard. The standard calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out a minimum standard for the information to be exchanged: * Introduction, overview of work and next steps. * Competent Authority Agreement (CAA) which deals with - Definitions - Type of information to be exchanged - Time and manner of exchange - Confidentiality and data safeguards to be respected * Common Reporting Standard (CRS) contains the reporting and due diligence standard that underpins the automatic exchange of financial account information, and the scope of: - Financial institutions covers: custodians, depository, investment entities, insurance companies, unless they present a low risk of being used for evading tax and are excluded from reporting - Financial information to be reported with respect to reportable accounts e.g., interest, dividends, account balance, income from certain insurance products, sales proceeds from financial assets and other income generated with respect to assets held in the account or payments made with respect to the account - Reportable accounts: accounts held by individuals and entities (including trusts and foundations) and look through requirements for passive entities - Common due diligence process institutions to be followed by financial institutions to identify reportable accounts Jurisdictions may choose to exchange information beyond the minimum standard set out in this document. This standard incorporates the progress made within the European Union, as well as global anti-money laundering standards, with the intergovernmental implementation of the US Foreign Account Tax Compliance Act (FATCA) having acted as a catalyst for the move towards automatic exchange of information in a multilateral context. The standard has no direct legal force; however, it is expected that jurisdictions will follow the model CAA and CRS closely when implementing bilateral agreements. FATCA - IRS released Revenue Procedure 2014-13 In December 2013, the IRS released Revenue Procedure 2014-13 (initially 2014-10), which contains the final version of the Foreign Financial Institution Agreement (FFIA). The revenue procedure is applicable to foreign financial institutions (FFIs) entering into FFI agreements with the IRS to be treated as participating FFIs for FATCA purposes, including Reporting FFIs in Model 2 IGA countries (e.g., Switzerland and Japan). As a reminder, Reporting FFIs in Model 1 IGA countries are not required to enter into FFIAs. The revenue procedure includes additions, deletions, corrections and clarifications to the draft FFI agreement, and notes that two sets of temporary regulations are expected be issued in early 2014. * Temporary FATCA regulations. One set of temporary regulations will provide clarifications and modifications to the final chapter 4 regulations. * Temporary coordinating regulations. The second set of temporary regulations will provide coordinating rules under chapters 3 (Section 1441 reporting and withholding on payments to non-US persons), chapter 4 (FATCA), and chapter 61 (reporting and withholding on payments to US persons). The revenue procedure, effective 1 January 2014, was published in the I.R.B. on 13 January 2014. FATCA - last substantial rules package issued In February 2014, the US Department of the Treasury and International Revenue Service (IRS) released the final regulations necessary to implement the Foreign Account Tax Compliance Act (FATCA) aiming to make additions and clarifications to previously issued FATCA regulations and provide guidance to coordinate FATCA rules with preexisting due diligence, reporting, and withholding requirements under other provisions of the Internal Revenue Code. The package includes amendments and clarifications in response to comments received on the final regulation. FATCA contact : Patrice Fritsch, Directeur Associé Christian Daws, Directeur Associé, EY Luxembourg

Table des matières de la publication Trésorier/Treasurer magazine - N°85 - April/May/June 2014

INTERVIEW L’impact du nouveau référenteil COSO sur les trésoriers

Trésorier/Treasurer magazine - N°85 - April/May/June 2014