Automatic Exchange of Information - impact on Dubai-based foreign clients, banks and services providers. By Vikrant Pangam Amicorp Advisory FZE Dubai

Transcription

1 Automatic Exchange of Information - impact on Dubai-based foreign clients, banks and services providers. By Vikrant Pangam Amicorp Advisory FZE Dubai

2 Common Reporting Standard (CRS) What is CRS? Automatic Exchange of Financial Information in Tax Matters The Common Reporting Standard (CRS) contains Due Diligence rules and reporting requirements for the FI s FI s in CRS jurisdictions will start to collect, identify and report data about its accountholders, who are resident in other CRS jurisdictions Many Jurisdictions take the Wider Approach What is required? Undertake a comprehensive review of their existing financial accounts Identify any clients that are tax residents of the CRS zone countries while opening new financial accounts All Account Holders (tax residents of the CRS zone countries) identified must be reported to the local tax authority on an annual basis

3 Classification under CRS Entity Financial Institute Non-Financial Entity Reporting Financial Institute Non-Reporting Financial Institute Active Non- Financial Entity Passive Non- Financial Entity Depository Institution Custodial Institution Specified Insurance Co Investment Entity Government Entity International Org. Central Bank Pension Funds Qualified CreditCard Co Exempt Invest Schemes Trustee Doc Trust Income & Asset Test Publically Traded Holding Entities of NFE Start-up Non-Profit NFE Treasure Entity of NFE

4 Classification under CRS Entity Financial Institute Non-Financial Entity Reporting Financial Institute Non-Reporting Financial Institute Active Non- Financial Entity Passive Non- Financial Entity Depository Institution Custodial Institution Specified Insurance Co Investment Entity Government Entity International Org. Central Bank Pension Funds Qualified CreditCard Co Exempt Invest Schemes Trustee Doc Trust Income & Asset Test Publically Traded Holding Entities of NFE Start-up Non-Profit NFE Treasure Entity of NFE

5 Financial Institution Investment Entity The term Investment Entity includes two types of Entities: 1. An Entity that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer: Trading in money market, foreign exchange, interest rate and exchange traded instruments Individual and collective portfolio management; or Otherwise investing, administering, or managing Financial Assets or money on behalf of other persons. 2. The second type of Investment Entity ( Investment Entity managed by another Financial Institution ) is any Entity the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets where the Entity is managed by another Entity that is a Depository Institution, a Custodial Institution, a Specified Insurance Company, or the first type of Investment Entity. Note: Investment Entity located in a Non-Participating Jurisdiction and managed by another Financial Institution is treated as a Passive NFE

6 Passive NFE & Controlling Persons Under the CRS a Passive NFE means any NFE that is not an Active NFE. Controlling Persons are the natural person(s) who exercise control over an entity and are identified by the Reporting Financial Institutions as follows: Control by Ownership Control by other means Control via Senior Managing Official Controlling Persons of a trust, means the settlor (s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust (including through a chain of control or ownership).

7 Summary of CRS compliance Financial Institutions - resident in the CRS participating jurisdictions Depository FI, Custodian FI, Certain Insurance FI, FI - Investment Entity to implement due diligence procedures on its financial accounts (incl Self-Certifications) to identify and document reportable accounts under CRS to establish reporting processes on the reportable accounts. Reportable Accounts : financial accounts held by individuals and entities (incl Trust and Foundations) who are tax resident of other CRS participating jurisdictions Also: Controlling Persons of Passive NFE (look-through approach) Information to be reported by FI to local tax authorities Name, address, tax residence(s), TIN(s), date and place of birth Account balances, all types of investment income, sale proceeds

8 CRS Indicia In case in Due Diligence the FI identifies a person with Indicia: assumed a tax resident in CRS Participating Jurisdiction, if: Residency address or mailing address; Telephone number; standing instructions to transfer funds to a account in a CRS jurisdiction; any POA or other signatory authority to any person with address in a CRS jurisdiction; or provided any verified in-care or hold mail address in a CRS jurisdiction NEW : previous residence in case migrated to jurisdiction with synthetic Tax Residence Certificate

9 Amicorp Group Who are we An independent growing global provider of company secretarial and fiduciary services Serving corporate but also high-net-worth-clients International Group - established in 1992 Emerging markets: Latin America, Eastern Europe & Asia Global networked team ISO 9002, SAS 70 type II & ISAE 3402 type II, Six Sigma Licensed & regulated corporate, trust and fund provider Strict compliance policies, compliant solutions Secure systems with backups in Geneva 9 Introduction to Amicorp Group

10 Our Services 01 Corporate Private Client Services Clients Services Deliver the broadest range of structuring alternatives involving corporate vehicles such as companies, partnerships and foundations. We assist with risk management and the simplification of global operations. 04 Director and Compliance and Shareholder Services Regulatory Services Provide corporate directors or other relationship services relating to the holding of clients entities in a range of jurisdictions. We supply a variety of services that ensure strict compliance with tax laws. Lead the engagement with private banks, family offices, accounting and legal firms and independent financial advisers. We deliver trust and fiduciary solutions including asset protection, tax planning, business and family succession planning. Assist our clients in managing the ever increasing complexity they are faced with: Compliance policy procedures AML framework Regulatory inspection readiness Regulatory remediation. Company Formation and Management Establish and administer all types of corporate entities. Provide all supporting services related to company management and administration services. FATCA & CRS Services Comply with US FATCA and the announced global FATCA regulations. To ensure clients are FATCA compliant we provide the following services: classification, registration, sponsorship, identification of US persons, reviewing existing structures for compliance, etc. 10 Introduction to Amicorp Group

11 Our Services Financial Trust and Private 07 Services Foundation Structures Amicorp Bank and Trust (ABT), provides tailor-made financial products and business solutions. AmiLife: Single Premium Life Insurance Amicorp Insurance Company (AIC) offers a captive insurance program. Fund Structuring and Administration We set up the right structure in the right jurisdiction. We obtain regulatory approval, draft prospectuses, resolutions and all related agreements. ISAE certified fund administrator. Used as the top entity in private or corporate investment holding structures, we provide establishment, management and administration services as well as trustees and directors. Outsourcing Services Our multiple services include: Scanning and document handling Finance and accounting (including internal and client administration), investment portfolio administration, payroll administration, compliance and IT hosting. Estate Planning We establish and administer estate planning structures. We provide private office services that are independent from any asset management relations the client has. 9 Introduction to Amicorp Group

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