Amicorp Group Impact of a transparent world from a Philippines perspective Presented by: Dicky Fong Head of Institutional Sales, Asia Hubbis Philippines Wealth Management Forum 25 th May 2017 Manila www.amicorp.com 1
Discussion points Overview of the Amicorp Group Common Reporting Standard CRS participating jurisdictions AEOI CRS/FATCA key differences Road to transparency 2
Overview of the Amicorp Group one of the top 10 global independent trust and fiduciary services providers Amicorp has worked with a number of major financial institutions in the Philippines and families for over 20 years. EMPLOYEES OFFICES COUNTRIES LANGUAGES YEARS EXPERIENCE ENTITIES The Institutional Sales unit led by Peter Golovsky (Global Head of ISU) recently conducted a roundtable with 15 major banks in Manila to discuss the key issues facing UHNWI s and families from a wealth planning, succession and regulatory perspective. 3
CRS Summary 1. Implications of CRS (Common Reporting Standards) on the disclosure of bank account information 2. OECD countries signing up CRS 3. What is the relevancy to tax residents in CRS participating countries 4
CRS Summary What is CRS? Why? How? Who? What? 5
Common Reporting Standards ( CRS ): AEOI 6
Who will be implementing? 1. Hong Kong 2. China Exchange to start September, 2018 Information to collect January, 2017 Note: Philippines Not yet committed to CRS 7
Who will be implementing? Other notable absentees Philippines United States Taiwan 8
What is to be reported? Broadly similar to FATCA FINANCIAL INFORMAION reported by FINANCIAL INSTITUTIONS regarding REPORTABLE ACCOUNTS 9
AEOI Reporting Controlling natural persons behind accounts and Reportable Persons will be reported to the competent authority in a participating jurisdiction (i.e. when they are tax residents) Name Residence Address Jurisdiction(s) of tax residence Taxpayer ID numbers for these jurisdiction(s) Date of Birth (Individuals) Account number Account balance Certain payments to the account 10
CRS/FATCA Key Differences CRS is not just FATCA for more countries Tax residence as opposed to citizenship No penalty provisions for non-compliance in CRS 11
What should you be doing? Greater impact than FATCA, clients do not need all details yet just awareness of AEOI You need to know what, when and why 12
Are offshore Trusts, Private Foundations and PICs dead? NO, but main benefits of having Trusts, Private foundations and other structures are changing: Due to AML rules, banks will request Account Holder (up to UBO) to be compliant In CRS the Account Holder or Controlling Persons in funds, PICs, Trusts will be reported if they are tax resident in CRS RJ. That includes the settlor and certain beneficiaries of a trust No longer confidentiality to tax authorities due to CRS 13
Impact of Global Transparency Commitment to Common Reporting Standards China 2018 CRS translated into Local Law? Hong Kong 2018 Indonesia 2018 Malaysia 2018 Philippines Not currently committed ---------------------------------------- Singapore 2018 Switzerland 2018 Taiwan Not currently committed ---------------------------------------- United Kingdom 2017 14
THANK YOU Thank you! Peter Golovsky Managing Director Global Head of Institutional Sales Tel: (852) 3105 9882 Mobil: (852) 9729 3870 Email: p.golovsky@amicorp.com Dicky Fong Head of Institutional Sales, Asia Tel: (852) 3105 9882 Mobile: (852) 9683 1151 Email: d.fong@amicorp.com Copyright Notice: 2014 Amicorp Group. All rights reserved. The contents of this presentation have been prepared by the Amicorp Group for informational purposes only. The information contained in this presentation does not constitute or contain any type of advice, and neither our presentation of such information nor your receipt of it will create a commercial or legal relationship. Consequently, you should not act or rely upon the information contained in this presentation without seeking professional counsel. This presentation does not constitute tax, legal or professional advice. Amicorp Group is the owner of all copyright and other rights in and to all copyrightable text and graphics on this presentation. Your company or its representatives may lawfully use this presentation for its own, noncommercial purposes, by displaying this copyright notice. Any other reproduction, copying, distribution, retransmission or modification of all or any parts of this presentation is strictly prohibited without the express prior written permission of the Amicorp Group. Trademark Notice: The Amicorp word and device are trademarks of Amicorp Holding Limited. All rights reserved. 15