TAINA Strengthens Commitment North America With Expansion To Canada
TAINA Technology is delighted to share that it will be strengthening its commitment to the North America/ Canada region by taking a Canada based business development talent on board. In today’s rapidly changing world, nations across the globe are adopting more robust FATCA and CRS compliance and reporting processes.
Background on FATCA and CRS in Canada
Over the last 6 years Canada has had to update their policies to meet international standards including Foreign Account Tax Compliance Act (FATCA) and (Common Reporting Standard) CRS. The two international regulations were put in place to combat tax evasion through increased transparency and reporting to tax authorities on foreign accounts.
The Canada Revenue Agency (CRA) began exchanging tax information with the Internal Revenue Service (IRS) in 2015, after Canada signed an intergovernmental agreement (IGA) with the U.S. IGAs were developed by the US Government in collaboration with other international governments to implement and enforce FATCA worldwide.
In 2017 Canada became one of many jurisdictions to sign on to CRS, a further global tax information, automatic exchange agreement developed by the Organisation for Economic Co-operation and Development (OECD) to fight tax evasions and promote tax compliance.
Recent Canadian FATCA and CRS Revisions
Canadian financial institutions are now obligated to provide complete tax data on their US customers and investors. In 2020 the CRA released tax guidance for both the FATCA and CRS regimes, which meant that Canadian financial institutions and financial service providers will have to collect self-certifications for their US-client accounts. This means from the 2020 tax year onwards financial institutions are obligated to provide full self-certification information on new accounts including providing SSNs or TINs on reportable US client accounts.
As of the 1st of January 2021, failure to do so could result in penalties of up to $2,500 per account levied by CRA. In addition the CRA also extended reporting deadlines for FATCA and CRS in 2020 and announced that it would not apply such penalties for any accounts opened before January 1, 2021.
TAINA's FATCA, CRS & QI Platform Value to Canadian Institutions
As a result of the updated CRA 2020 guidance, Canadian financial institutions needed to review and audit their due diligence and reporting processes and policies to ensure they are being fully compliant with the current FATCA and CRS rules.
Reviews will help institutions identify gaps, help mitigate points of exposure within your process and help you assess whether your tax documentation validation process is complete, comprehensive, and executed in line with policies and procedures.
TAINA’s fully-automated FATCA & CRS Validation Platform is helping financial institutions transform their tax validation process from a costly and risky compliance burden into a competitive advantage by saving them costs, reducing their risk and improving their customer’s experience. Using TAINA’s flexible and lightweight platform you can automate and streamline the validation process whilst ensuring you have good year end data that will result in clean FATCA and CRS reporting to tax authorities all year round.
We would love to talk to you more about your current documentation validation process and how our award winning FATCA and CRS Validation platform may add value to your documentation process.