FATCA and CRS have been commonly mentioned together, but in fact have significant differences. While FATCA is targeted mainly towards US citizens, CRS involves reporting on account holders of the countries participating in it. Hence, the exchange of information involved in CRS is broader than FATCA
The first year adopters of CRS were mainly European countries which had to go through a steep learning curve in order to meet their deadlines in 2017. As countries in MENA gear up for their deadlines in 2018, they must learn from these best practices in order to prepare for the unprecedented data management and compliance challenges that Financial Institutions will face with related tax transparency regulations. Further, the role of technology becomes crucial due to the high volume of information required by the authorities – adopting this could reduce the chances of human error significantly.
Watch as Pierre Arman, Market Development Lead for Tax and Accounting at Thomson Reuters MENA, speaks to Katherine Lee, FATCA and CRS Specialist at Thomson Reuters to discuss the journey of CRS: its challenges, lessons learnt, and how technology can enable firms to automate their tax reporting process.