AEOI compliance can be very complex, as different countries and jurisdictions have different requirements. AEOI, which stands for Automatic Exchange of Information, covers both the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). FATCA is a US regulation enacted in 2010, and CRS is the global equivalent enacted in 2014. An international framework of more than 100 participating jurisdictions have signed a Multilateral Competent Authority Agreement to facilitate the automatic exchange of information to prevent tax evasion.
While FATCA solely targets US taxpayers using foreign accounts, CRS applies to any financial institution in a participating jurisdiction and any reportable account holders. A reportable account holder is a tax resident in a reportable jurisdiction.
The two pillars of AEOI compliance, due diligence and reporting, create a substantial amount of administrative work. When paired with regulation updates from any of the 100 participating jurisdictions, outsourcing becomes an attractive option. By outsourcing AEOI services, clients can provide relief to responsible officers and enjoy the benefits of subject matter experts to review tax documents, digitize forms, and prepare for upcoming reporting cycles.
SS&C provides FATCA and CRS due diligence and reporting services to small and large clients alike. Using a cloud-based portal, our specialized tax team reviews, validates and digitizes tax documents and assigns classifications to account holders. We then provide a summary of the reportable accounts and prepare the returns for filing. The portal also helps us track expiration dates of tax forms and monitor for changes of circumstance at the account holder level.