Articles

Gain deeper insight with articles that give our considered opinion and predictions of where the industry will go next.

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Are AML and CFT Based Practices for Validation of Tax Residency Inadequate for AEoI CRS Purposes?

Marco Zawar shares his views on why Anti Money Laundering and Counter Financing of Terrorsism related due diligence measures in Hong Kong are insufficient to meet financial institutions’ AML/KYC requirements under AEoI/CRS…

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FATCA and CRS Curing Periods

Our affiliate, Marco Zawar, asks if FATCA and CRS document curing and classification requests to verify Change in Circumstances are being correctly implemented.

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Deferral of FATCA and CRS Reporting Deadlines – Should You Be Taking Advantage?

With the entrance of Covid-19, a lot of things have changed in the world, and a lot of extra stressors have piled on. And it's left firms wondering, should they take advantage of the defered FATCA and CRS reporting deadlines?

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Nationality, domicile, residency, citizenship and beneficial ownership

We often find that linguistic issues can cause problems for firms looking to establish the correct withholding rate for their clients. In particular, we have seen the distinctions between nationality, citizenship, domicile, residency and beneficial ownership cause a degree of avoidable consternation. In this post, we present a quick reference guide.

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GATCA: A Practical Guide to Global Anti-Tax Evasion Frameworks

TConsult's subject matter experts Ross McGill, Chris Haye and Stuart Lipo have written a new book providing a practical guide to global anti-tax evasion frameworks. In this post, Stuart describes the context for the book...

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The Challenges of GATCA

The global anti-tax evasion frameworks that comprise GATCA have as many commonalities as they have differences, so it makes sense to approach regulatory compliance in a holistic fashion.

In this post, we explore how smaller firms are responding to the pressures of compliance...

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Will AEoI be the new Equifax?

What are the data security risks associated with the AEoI framework? In this post, Ross McGill explores some of the risks and issues a stark warning to the financial services industry.

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  • Periodic Reviews – Essential Oversight for QIs

    I just know that a lot of you groaned and put your heads in your hands when you read that […]Read more

  • 定期審查-對QI不可或缺的監管

    我只知道,當您們看到這個標題時,很多人都會痛苦呻吟,並將頭埋入手中。我每天都在和QIs打交道,他們告訴我定期審查是一件多麼令人頭疼的事情,要做好又是多麼具有挑戰性。我想,有不少人都希望不要再處理這些了! 但不管您是否喜歡,如果您在一家涉足美國資本市場的金融機構工作,那麼您的公司完全有可能與美國國稅局簽訂協議,成為QI或稱合格中介機構。這意味著您必須進行定期審查。 QIs與您們的義務 如果您是一家QI,您將簽署一份QI協議。這份長達205頁的文件概述了您作為QI的所有義務,以及美國稅收法第3章和第4章規定的監管義務。以防您實際上沒有閱讀該文件的全部內容,其中大部份義務都與稅務業務、記錄客戶、預扣稅款並向美國財政部繳納稅款以及向美國國稅局報告有關。 然而,合約中還有一個治理部分。許多公司要麼認為這部份並不重要,要麼沒有足夠重視,而這可能會成為他們的禍根。因此,為了讓大家更好地理解,QI協議中的監管內容有: 控制 監管 執行 涵蓋的內容很多,所以今天我們只談第二點–監管。 如果您簽署了一份長達205頁的合約,您就會希望合約中會有一些條款,規定您如何確保簽約方履行他們的義務–以及他們如何知道您履行了您的義務。IRS是使用QI每三年必須進行一次認證的系統來實現這一點。由於QI合約為期6年,因此每個QI在合約期內需要進行兩次認證。每次認證之前都會進行定期審查。 誰進行定期審查? 安排定期審查是責任長官(Responsible Officer)的工作之一。這是您機構中負責監督QI流程的人員,也是身為QI必須履行的控制義務。由於QI義務非常廣泛且複雜,責任長官在做出任何認證之前必須做兩件事: 簽訂合約並監督定期審查 確保您(QI)擁有有效的內部控制 這代表他們必須指派專業人員進行定期審查。IRS對於誰可以進行定期審查有兩項規定。 審查人員必須獨立:QI協議規定,審查人員必須有足夠的獨立性來進行審查,不能審查自己的工作或同一「公司」內其他任何人的工作。因此,如果您讓顧問幫助您進行QI申請或合規計劃,那麼IRS認為他們不是獨立的,不能擔任您的審查人員。我們經常使用我們的Tax Compliance Toolkit平台進行定期審查。 審查人員必須稱職:審查人員需要對QI的帳戶進行測試,以確保他們正確記錄客戶,並確保文檔是有效的、正確地預扣稅款並在FATCA和QI中正確地申報。大多數金融機構的內部審計團隊都很難做到這一點,因為他們往往沒有足夠的美國預扣稅合規知識或經驗。因此,大多數QI需要使用外部審計人員(auditor)或第三方顧問(例如我們)。 […]Read more

  • 1042-S Reporting – A 9-Month Activity You’re Already Behind On

    It’s that time of year again – US 1042-S reporting season! It’s a financial institution’s worst nightmare, and many aren’t […]Read more

  • Muinmos and TConsult ink deal over digital investor tax self-declarations

    Muinmos and TConsult have signed an agreement to integrate TConsult’s Investor Self-Declaration platform (ISD) into Muinmos’ Client Onboarding Platform, enabling Muinmos’ clients, typically financial institutions, to automatically obtain ISDs instead of using multiple paper tax certification forms to document the tax status of their clients.Read more

  • Training: The QI’s Achilles’ Heel

    Training is an essential component of your obligations as a QI. In this article we explore what the QI Agreement says about training and how we can help you to deliver cost-effective training to everyone in your firm with a role in QI compliance.Read more

  • Announcing the Tax Compliance Toolkit Training Academy

    We are delighted to officially announce the launch of the Tax Compliance Toolkit Training Academy with our debut course: QI Essentials. This course provides a foundation level understanding of the U.S. qualified intermediary regime and the role you play in helping your firm to be compliant with the terms of the QI Agreement. Find out how you can access the training...Read more

  • Argentina becomes latest jurisdiction to sign an IGA with the USA

    The latest FATCA news is that Argentina has signed a Model 1A IGA with the US. We consider what this means for Argentine financial institutions.Read more

  • The New QI Agreement 2023: What it means for you (Webinar Recording)

    A new QI Agreement is due to be released in January 2023, including new obligations for qualified intermediaries that allow their clients to own interests in publicly traded partnerships. We hosted a webinar on 8th December for financial institutions in Taiwan and Hong Kong to explain the implications of these proposed changes. Watch the recording now...Read more

  • Saudi Arabia KYC Rule Approval: What it means for you (Webinar Recording)

    Saudi Arabia’s KYC rules were approved by the IRS earlier this year, which means that all Saudi Arabian financial institutions are now eligible to apply for QI status. We hosted a webinar on 30th November for financial institutions in Saudi Arabia to explain the benefits of becoming a QI. Watch the recording now...Read more

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    DTC 1042-S 公告

    DTC最近推出名為1042-S公告 (1042-S Announcement) 的新服務。此為為專稿,提供我們對新服務影響的個人解讀。此文內容非稅務、法務或投資建議。僅為作者本人表達之觀點。 解決的問題是 目前,當某些類型的美國發行公司進行配息時,有些配息可能被分類為股息,根據美國稅法,股息必須預扣與申報的。當之後取得資訊時,可能會發生該配息實際上不應被歸類為股息的情況。因此,有兩個人工作業程序必須由非美國金融機構進行,無論是#QI還是#NQI。第一個是退還多扣的稅款。第二個是修正之前已經被申報為股息的1042-S申報資訊。對於新的DTC通知所涵蓋的證券類型,配息的正確分類資訊將在支付日期之前提供。這代表對金融機構而言,將不再需要重新分類、退款或修正1042-S申報。 現今會發生什麼事? 重分類最常發生於美國共同基金和美國不動產投資信託(REITS)。這些類型的美國發行公司有時會將原本發放(扣稅與申報)為股息的所得重分類為,例如:資本報酬。當一個非美國金融機構發現這些情況時,通常是下一個美國稅務年度的幾個月,且通常是在他們已經向IRS提交1042-S申報資料(申報配息為股息)之後。所以,除了退款給他們的客戶之外,他們現在還必須向IRS提交修正的1042-S申報,並向受到此變更影響的任一客戶發放接收副本。 因為美國的申報系統是一連串逐層上報,支付鏈的每個金融機構都必須修改其申報,否則將面臨來自IRS的罰款通知。例如:一家擁有直接客戶(個人或實體)的QI可能須要修改減少總額和預扣稅額的集合1042-S,而修改另一個增加相同金額總額但保留該集合預扣稅額為0的1042-S。如果他們的客戶是其他金融機構,他們會單獨被申報,所以QI也必須修正特定IRS 1042-S,並向他們的客戶發送接收副本,通知他們這些變更,以便客戶能進行相同流程…以此類推到支付鏈下游。 DTC服務代表什麼? DTC指出重分類也會發生在某些指數型基金(ETF),當類似股息的配息收入被重新分類為與利息相關的股息的時候。股息通常適用於預扣稅,而與利息相關的股息則不適用,因為他們屬於投資組合利息豁免的定義範圍。 共同基金或REITS的重分類跟ETF的重分類差別在於,對ETF而言,資訊是可取得的但以前沒有公布,而共同基金和REITS的重分類是發行公司在稅務年度結束後才決定。藉由提供有關這些ETF收入正確分類的紀錄日期資訊,不須進行退款和修正申報程序。 將產生什麼影響? DTC服務是新的且目前範圍相當有限,但我們可以預期將會增加。對非美國金融機構的影響將與客戶交易這些特定ETF的規模和範圍成正比。採用率將是關鍵。沒有被列入DTC服務所涵蓋的ETF將面臨人工重分類的流程。因此,隨著這項服務的發展,密切關注這項服務納入的ETF數量將非常重要。 如果DTC通知被參與DTC的美國預扣上手(USWAs)或預扣式QI(WQIs)所採用。退款的數量與修正1042-S的數量應該會下降。然而,整體而言,因為重分類的原因各不相同,金融機構將無法用自動化完全取代他們的人工作業流程。然而,這是朝正確方向邁出的一步。 如果您已經有處理重分類的政策與流程,則不會有影響。據我們所了解,接受DTC 1042-S公告服務的ETF將有效地將這些配息歸類為投資組合利息。由於業界使用的大多數預扣聲明書已經允許對稅率集合帳戶中的投資組合利息配息按0%課稅,因此對作業的直接影響很小。然而,重要的是,金融機構要意識到正在發生的事情,並確保他們的系統能夠處理這類型的收入配息。 下一步是什麼? 除了有希望將DTC 1042-S公告的使用範圍擴大到更多的ETF之外,DTC在其SEC申報規則變更文件中提到,使用該系統來處理1446(f)配息與871(m)。1446(f)的影響將允許DTC處理包含多個配置成份的單一配息,以達到預扣與申報目的。 若您想了解更多,請造訪TConsult網站或聯絡我們([email protected])Read more