Over the years all our experts and specialists have talked about barriers to effective tax compliance. What stops institutions being able to manage their obligations, understand the steps they need to take, and submit information in the right places in the right ways? In our experience, the biggest issue all these institutions face is simple – awareness. Actually knowing what’s expected of them, what they need to do, and how all of the elements interact with each other. It turns out, that the IRS agrees.

The IRS View On Training

Did you know that the IRS has included training in its list of compliance obligations for QIs? It’s in section 10.02(A)(2), where it states:

“The responsible officer must communicate such policies and procedures to any line of business of QI that is responsible for obtaining, reviewing, and retaining a record of documentation under the requirements of section 5 of this Agreement; making payments subject to withholding under section 3 of this Agreement; reporting payments and accounts as required under sections 7 and 8 of this Agreement; or entering into potential section 871(m) transactions, in the case of QI that is acting as a QDD.”

Where it references ‘such policies and procedures’, it’s talking about the previous section of the agreement, which places the responsibility for training onto the Responsible Officer and sets out the obligation of the Responsible Officer to have a written compliance program in place.

Another stumbling block for the responsible officer here is that QIs are contractually obligated to ensure that their staff have access to effective training that allows them to implement the policies and procedures in the compliance program. And you have to be able to demonstrate that you have provided this in order to maintain compliance. The problem is that centralised training in this niche is hard to come by.

It’s important to note here that, while QIs are subject to these contractual obligations, NQIs aren’t. But there are always NQIs looking to apply and actively applying for QI status, who need to be aware of this requirement. If your firm as an NQI is planning to apply for QI status in the future, you may struggle to obtain it if you’ve been non-compliant as a NQI. So the sensible option is to train staff, particularly if the firm is considering a QI application in the near future.

The TConsult Tax Compliance Academy

At TConsult this is an issue we have seen often. So much so, that we decided to do something about it.

A few years ago, we designed and launched our Tax Compliance Toolkit, which has two main purposes. The first is to provide responsible officers with tools to help them achieve organisational compliance – including building a compliance program. The second was a training academy. This academy is a platform for a range of online training courses, designed and presented by the people who literally wrote the book on the subject – us!

We’re happy to announce that the first two courses are now LIVE and available in the Tax Compliance Toolkit Training Academy. You can find information on both, as well as how to sign up, here.

What Courses Are Included?

New courses are being added to the Tax Compliance Academy all the time, but for now there are two core courses live and ready to go on the academy:

FATCA Essentials: Gives you a foundation level understanding of the US international anti-tax evasion regime known as FATCA, and the role you play in helping your firm to be compliant. Broken down into 6 modules with a quiz to test your knowledge, it’s absolutely essential for anyone working with FATCA regulations.

QI Essentials: Provides you with knowledge of the US QI regime and the role you play in helping your firm to be compliant with the terms of the QI agreement. This course is split into 6 modules, which covers the context, documentation, withholding, depositing and reporting, giving responsible officers all the information they need to stay compliant.

How Does It Work?

Once you’re signed up to the Tax Compliance Toolkit Training Academy, you’ll be able to view and take each course at your own pace. Each of our courses is made up of broad modules, which are broken down into detailed topics, taught via video and text. There’s a test at the end of each module, and a certificate at the end if you get a passing mark (over 80% correct answers). All the courses are accredited by the CPD certification service, so you gain personal development points for each course you complete.

These courses are fantastic tools for QIs or NQIs of any shape and size, whether big, small or micro. We designed it to be used by standalone financial institutions, expanded affiliate groups, consolidated compliance groups, Central Securities Depositories and even extended custody chains.

Our academy training courses are just £150 per person (plus VAT if applicable), which makes gaining the knowledge and tools for compliance accessible for all. With these new training courses (and more to come), there’s now an easy way to get yourself and your staff up to speed on the basics, making it less likely you’ll make costly mistakes, or be subjected to penalties by your regulator.

So if you’re looking for an easy way to get that critical information, why not sign up to the Tax Compliance Toolkit Training Academy today? Just click here for more information, or give us a call to speak to one of our experts.