The Foreign Account Tax Compliance Act (FATCA) and the Automatic Exchange of Information (EAR / AEOI / CRS) rules require investment entities to determine their status as non-financial (NFE) or financial (FI) entities. Qualified financial entities are responsible for applying the EAR and FATCA obligations, in particular for filing tax returns for persons subject to reporting. This work must be carried out by company directors or trustees. This declaration must be made annually. These obligations may be performed by the FI entity itself or delegated to an external Sponsor or Service Provider.
Geneva Compliance Group SA (GCG) allows financial entities to assist them in their obligations relating to the exchange of information and FATCA. Geneva Compliance Group is in charge of the recovery of data from financial entities. On the basis of this information, it will be determined whether the entity in question should register with its tax authority or whether Geneva Compliance Group can use its access to post the CRS declaration. Indeed, some jurisdictions impose mandatory registration on their EAR tax portal of all entities with IF status, even if these entities have no reporting to do. GCG is able to make these registrations for the entities concerned. Once the data has been collected and formatted, a mapping will be carried out to verify that there is an activated agreement between the country of incorporation of the financial entity and the country of residence of the entity's shareholder.
As soon as the mapping is done, the financial entities subject to reporting will be identified. On the basis of this list, Geneva Compliance Group will request financial data from these entities. The financial data required is the entity's assets at the end of the reference period (usually 31 December) and any distributions made to the shareholder during that period. Once the financial information has been obtained, Geneva Compliance Group will transform this data into an encrypted.xml file and post it on the portal of the jurisdiction in which the entity has been incorporated. In conclusion, Geneva Compliance Group (GCG) offers corporate directors and trustees an outsourcing service for EAR and FATCA reporting obligations, covering all jurisdictions applying information exchange and in all required.xml file formats. This outsourcing of technical tasks allows financial entities to comply with the applicable rules at a lower cost, thus freeing up time for the financial intermediary to focus on its core competencies.