Whilst banking secrecy once protected your client's data, the multilateral agreement on the automatic exchange of information (AEOI) via the OECD's common reporting standard (CRS) now demands full transparency. The agreement defines which clients you must identify, and what tax information must be sent to whom. This not only creates an additional administrative burden, but also requires a deeper level of information and documentation on client relationships.
Early adopters have to implement the standard in 2017, which therefore requires the exchange of 2016 tax data. The second group of signatories – which includes Switzerland will start in 2018, and thus exchange 2017 tax data. So if your organisation includes foreign subsidiaries, you'll have to prepare sooner than with a purely domestic operation.
Most financial service providers are familiar with the FATCA provisions. Though this experience is helpful, CRS/AIE requirements are far more comprehensive.
The new standard will force you to think about your core markets. The more markets you serve, the greater the administrative burden involved in meeting the transparency requirements.
CRS / AIA raises a number of questions: Are you affected? Who needs to be reported? How do you communicate? Does CRS / AIA apply to all your products? Is your compliance still adequate? We can help you answer these questions and offer a comprehensive service package – from an individual case assessment to the development of an overall approach. You'll benefit from our broad experience in areas such as FATCA or the final withholding tax, and of course also from our extensive global network.
Partner and Leader Treuhand/Corporate Support Services Switzerland, PwC Switzerland
Tel: +41 58 792 43 72
Tax and Legal Innovation, Transformation & Disruption Leader, PwC Switzerland
Tel: +41 58 792 42 82