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CITT Compare Tool Update: Data updated for Austria, Argentina, Belgium, Bermuda, Canada, China, France, Hong Kong, Hungary, the Isle of Man, Moldova and Switzerland

On 20, 23, 26 and 27 March 2020, PwC’s CITT Compare Tool was updated to include the latest content from Argentina, Belgium, Canada, China, France, Hungary and the Isle of Man. In addition, PwC’s CITT Compare Tool was updated to include the extended FATCA reporting deadlines in Austria, Bermuda, Hong Kong, Moldova and Switzerland. Please take this opportunity to re-run reports for those countries and use the latest information within your projects.

The United Kingdom tackles promoters of mass-marketed tax avoidance schemes

On 19 March 2020, Her Majesty’s Revenue & Customs (“HMRC”) in the United Kingdom published a policy paper on its strategy to challenge and address promoters of tax avoidance schemes (Link).

The paper “Tackling promoters of mass-marketed tax avoidance schemes” outlines HMRC’s policy, operational, engagement and communications work to tackle those who promote mass-marketed tax avoidance schemes, through strengthening HMRC powers, disrupting their supply chain and deterring taxpayers from taking up the schemes

The initial guidance on tax avoidance including penalties, appeals and publishing details of enablers for defeated tax avoidance schemes was published on 30 April 2018 (Link-Blog).

Germany releases FATCA Infobrief 01/2020

On 20 March 2020, the German Federal Central Tax Office (“Bundeszentralamt für Steuern” or “BZSt”) issued a newsletter: “FATCA Infobrief 01/2020”, providing updated information regarding the Foreign Account Tax Compliance Act (“FATCA”). The Infobrief will be released on the BZSt’s website in the coming days (Link-German) and includes information on:

  • The production environment for FATCA submissions (available from 13.05.2020);
  • Updates to the XML schema regarding specifying the time zone;
  • New US regulation regarding the US TIN from the reporting period 2020. Since the TIN is a mandatory entry, the IRS will always issue an error in the future in the described constellations

Guernsey publishes policy on TIEAs and DTAs and issues regulation on CRS

On 4 March 2020, the States of Guernsey Revenue Service released Guernsey’s policy on Tax Information Exchange Agreements (“TIEAs”) and Double Taxation Arrangements (“DTAs”) (Link).

The policy highlights that Guernsey is politically and actively committed to the principles of transparency and the exchange of information for tax purposes. Besides participating in the Multilateral Convention, Guernsey stands ready to sign further TIEAs and DTAs and negotiate with any territory without prioritizing any country of no, or little, economic significance over a country with which it has substantial relevant economic ties.

In addition, on 11 March 2020, the States of Guernsey Revenue Service issued “The Income Tax (Approved International Agreements) (Implementation) (Mandatory Disclosure Rules) Regulations, 2020” (Link).

The regulation addresses:

  • The implementation of the Mandatory Disclosure Rules and Competent;
  • The meaning of ” Common Reporting Standard (“CRS”) avoidance arrangement”;
  • The meaning of “opaque offshore structure”.

Australia shuts off AUSkey

On 25 March 2020, the Australian Taxation Office (“ATO”) set the final countdown for AUSkey transition (Link).

From today, 27 March 2020 11:59 AEDT, one will only be able to use the new services – myGovID, Relationship Authorization Manager and machine credentials (“M2M”) – to interact with Australian government online services through SBR-enable software.

Updated support and guidance material to help with these services can be found on ATO’s website (Link).

In addition, on 25 February 2020, Frequently Asked Questions about myGovID, the M2M solution, Relationship Authorization Manager (RAM) and moving from AUSkey, have been made available for users to help make the transition (Link).

One can subscribe to receive e-mail alerts from the ATO when new information regarding CRS and the Foreign Account Tax Compliance Act (“FATCA”) reporting are released, by e-mailing ato-dmi@ato.gov.au.

Liechtenstein releases Newsletter on FATCA and CRS

On 25 March 2020, the Liechtenstein Tax Authority released “Newsletter 02/2020” (“Newsletter”). This newsletter provides information on the recent changes in the Liechtenstein Automatic Exchange of Information (“AEOI”) legislation regarding the Foreign Account Tax Compliance Act (“FATCA”) and the Common Reporting Standard (“CRS”) (Link-German).

The deadline for submission of FATCA reporting and CRS reporting to the tax administration for the 2019 reporting period is extended from 30 June 2020 to 31 July 2020 due to current circumstances relating to the Coronavirus.

Before information under FATCA or CRS is reported abroad, the persons and legal entities from whom the data originates must be informed by the Liechtenstein Tax Authority about the data transfer.

Liechtenstein passive NFE must then immediately forward this information to the persons subject to reporting requirements. This deadline is 31 March of the year in which FATCA/AIA data are exchanged for the first time and cannot be extended to the detriment of the persons and legal entities concerned. Due to the Coronavirus spread, delays in delivery have not been sanctioned by the tax administration, yet. Reporting Liechtenstein financial institutions and Liechtenstein legal entities are, however, required to comply with the duty to inform immediately. It is suggested that alternative delivery options (e.g. electronic delivery) shall be taken in consideration.

More information on the AEOI in Liechtenstein can be found on the FATCA (Link-German) and the CRS (Link-German) website of the Liechtenstein Tax Authority.

Sweden issues Newsletter on AEOI

On 20 March 2020, the Swedish Tax Agency released a Newsletter summarizing the latest Automatic Exchange of Information (“AEOI”) events in Sweden.

The technical descriptions for the 2019 income year is now available for the Foreign Account Tax Compliance Act (“FATCA”) (Link-Swedish) and the Common Reporting Standard (“CRS”) (Link-Swedish)

Information on lex Asea values ​​has been issued and attached in the Swedish Newsletter.

Please note that the above information has been received through an email subscription. To receive the latest news regarding AEOI in Sweden, feel free to send a subscription request to the following email address: finansiella.konton@skatteverket.se

Oman ratifies Mutual Administrative Assistance Convention

On 25 March 2020, His Majesty Sultan Haitham Bin Tarik issued Royal Decree No. 34/2020 ratifying the Convention on Mutual Administrative Assistance in Tax Matters after presenting the same before the Majlis A’Shura, which is the Omani lower house of the Council (Link).

PwC recently issued a Tax Insights on Oman’s Common Reporting Standard (“CRS”) implementation (Link-Blog).

Malaysia updates CRS Reporting Information

On 24 March 2020, the Inland Revenue Board of Malaysia (“IRBM”) updated the Common Reporting Standard (“CRS”) webpage to include information on the related reporting deadline (Link).

The initial deadline for submitting the CRS Report is from 1 March 2020 to 30 June 2020. Due to the Coronavirus the deadline of 2020 CRS Reporting is extended to 31 July 2020. The registration portal is open and the submission in the production environment will take place from 1 March 2020 to 31 July 2020.

For queries related to the site and/or information on the reporting obligations in Malaysia, the public is invited to submit emails to fatca@hasil.gov.my.

Singapore announces changes t0 FATCA reporting requirements

On 24 March 2020, the Inland Revenue Authority of Singapore (“IRAS”) announced that with effect from 1 April 2020, Reporting SGFIs will no longer be able to log in to the IDES and should download any reports that they may need from the IDES before 1 April 2020 (Link).

In addition, also with effect from 1 April 2020, Reporting SGFIs must submit all Foreign Account Tax Compliance Act (“FATCA”) returns, including nil returns (if applicable), electronically to IRAS via the “Submit CRS or FATCA Return” e-Service at IRAS’ myTax Portal. Reporting SGFIs must provide their FATCA Registration Information to IRAS in order to submit their FATCA returns to IRAS from 1 April 2020. Reporting SGFIs that have yet to do so should provide the information via the “Apply for CRS Registration” e-Service. A CRS-registered SGFI should submit only the FATCA Registration Information of the entity under the e-Service.

Finally, Reporting SGFIs submitting a FATCA reporting packet via IDES between 25 March 2020 to 31 March 2020 must encrypt the FATCA reporting packet using the new IRAS Public Key.

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