EVENT: KPMG Briefs Corporate Members on CRS and New Tax Evasion Rules

Date: 23rd September, 2016 Time: 01:00 am - 02:30 am
KPMG Briefs Corporate Members on CRS and New Tax Evasion Rules

Three senior executives from KPMG briefed ABA corporate members over lunch on the Common Reporting Standard (CRS) and the new corporate offence related to tax evasion. 

Peter Grant, Director, Operational Taxes, at KPMG, explained that the requirements of the CRS are similar to those of the US Foreign Account Compliance Act (FATCA) and the the UK's Crown Dependencies and Overseas Territories (CDOT) rules. However, the scale of CRS is much greater than FATCA or CDOY since it extends to any bank customer who is tax resident in a 'reportable juristiction'. About 60 juristictions have agreed to start reporting in 2016 and another 40 are due to report from 2018. 

KPMG says that financial institutions will be able to follow a similar approach in their CRS reporting as they have been doing with FATCA and CDOT but that there are some differences. For example, many entities that engaged only in investment management were exempt from FATCA reporting, but will not be exempt under CRS. Furthermore, there is no de minimis threshold under CRS, with the result that all financial accounts of all individuals resident in every reportable juristiction will have to be reported. 

UK based financial institutions will have to file CRS reports to the British tax authorities on financial account balances and payments (such as interest, dividends, distributions from funds as well as proceeds from the sale of investments) for residents of reportable juristicitions by an annual deadline. The first such deadline will be 31 May 2017 (which is the same deadline by which financial institutions need to fulfil their ongoing FATCA and CDOT reporting obligations). All accounts may be reported to HMRC in a single submission (which is unusual - in most juristictions a single submission is not possible). 

A useful KPMG briefing document on CRS is attached here.

Peter Kiernan, a solicitor with KPMG, then spoke about the Corporate Offence of Failing to Prevent the Facilitation of Tax Evasion. Under this new offence, a bank may be found guilty even if it did not benefit from the tax evasion, unless the bank can prove that it had strong controls in place to prevent it. Mr. Kiernan added that the Financial Conduct Authority, one of the UK regulators, is expected to incorporate the provisions of the new offence into its supervisory regime.

This lunch briefing was part of a series that the ABA holds for its corporate members.

Contact details of the KPMG executives are:

Peter Grant, Director, Operational Taxes, peter.grant@kpmg.co.uk

Peter Kiernan, Solicitor, peter.kiernan@kpmg.co.uk

Mariam Moi, Senior Manager, mariam.moi@kpmg.co.uk





More in Events

Annual General Meeting confirms robust health of the Association

Annual General Meeting confirms robust health of the Association

Our Annual General Meeting was held on 22 November. The annual accounts show that the the Association is in strong financial health, with corporate memberships at record levels. 

ABA Operational Resilience Group meeting

ABA Operational Resilience Group meeting

PWC hosted a meeting of ABA member banks to consider ways in which they could work together to strengthen their operational resilience.

  • Date: 30th September, 2019
  • PwC Offices, London

Meeting with Financial Conduct Authority

Meeting with Financial Conduct Authority

We hosted a meeting between the Financial Conduct Authority and Arab banks in London. 

  • Date: 19th September, 2019
  • ABA Offices

The weather smiles on ABA Summer Party

The weather smiles on ABA Summer Party

Our Summer Party was the last in a busy series of series of mid-year events.

  • ABA Offices, Mayfair

Annual Real Estate Seminar

Annual Real Estate Seminar

Our annual real estate seminar drew more than 100 participants and included a lively discussion on the consequences of Brexit on the London property market.

  • Date: 10th July, 2019
  • ABA offices, Mayfair

Upcoming ABA Events

Other Upcoming Events