New tax reporting requirements will help US & UK authorities combat tax evasion

From 1 July 2014, Old Mutual Wealth entities must be ready to fulfil the requirements of new tax reporting laws, specifically, the Foreign Account Tax Compliance Act (FATCA) from the United States (US) and tax sharing information agreements (TISAs) coming out of the UK. The aim of these requirements is to ensure US and UK tax residents cannot avoid their tax liabilities by holding assets in accounts held offshore.

These requirements necessitate ‘financial institutions’ (FIs) – such as us - to capture and report certain information to the US and UK tax authorities. The information is to be reported where we identify any customers linked to the US. and UK. This requires a review of our customers including where those customers are linked to or have control over legal entities and legal arrangements, such as trusts. 

Our Q&A explains FATCA and TISAs and, how Old Mutual Wealth entities will be complying with it and how it will affect your clients.

The Knowledge Direct article, ‘There’s no escaping FATCA’ also provides information about how the new reporting obligations might affect you.

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