The DAC2 and CRS have been implemented into Maltese legislation by virtue of LN 384 of 2015 entitled the Cooperation with Other Jurisdiction on Tax Matters (Amendment) Regulations, 2015, which regulations amend the Cooperation with Other Jurisdiction on Tax Matters Regulations with effect from 1st January 2016. In line with regulation 45 of the afore-mentioned regulations, the DAC2 and CRS have been implemented uniformly into Maltese legislation.
An Information Exchange System Developed by the OECD
The Common Reporting Standard (CRS) formally referred to as the Standard for Automatic Exchange of Financial Account Information, is an information exchange system developed by the Organisation for Economic Co-operation and Development (OECD). The aim of this standard is to combat cross border tax fraud and tax evasion using offshore financial accounts while reinforcing the protection of the proper functioning of tax structures.
The idea was inspired by the Foreign Account Tax Compliance Act (FATCA) implemented in the US, which was the pioneer of such legislations aimed at improving the levels of transparency internationally. However, CRS, which is signed by more than 90 countries, is broader in scope than its US counterpart. It requires countries to collect data from financial institutions, so that they can then automatically exchange this information to the other jurisdictions which form part of the agreement.
This Standard can present substantial operational and business challenges on your business, since it increases the reporting requirements, and requires the collection of complex information. Such tasks can put a strain on your resources. This is precisely BOV Fund Services Limited’s motivation to offer administrative support to address these requirements of our client base.
What do we offer?
BOV Fund Services Limited can assist you by way of collation of the required information thereby ensuring that your fund is compliant to all the procedures necessary to meet your reporting obligations.
BOV Fund Services Limited’s CRS Reporting Services ensure that the regulatory burden is taken off your shoulders. Thanks to the company’s ongoing investment in its IT infrastructure and process development, BOV Fund Services can provide a holistic solution, thereby avoiding the risk of non-compliance which will result in a serious breach of the law and applicable penalties. Amongst others BOV Fund Services will also carry out the required due diligence and submit the reports to the appropriate authorities whenever necessary.