Tax Transparency

Certain Financial Institutions are subject to an obligation to file automatic exchange of information reports.  This include FATCA / CRS / Transfer Pricing / cross-border arrangements, which require Financial Institutions to collect specific information and report information on an annual basis.

Although FATCA and CRS have been in place for several years, their enforcement and the interpretation of certain rules is constantly changing. It is therefore important to keep in touch with any changes and ensure that any remediation is carried out as efficiently as possible, keeping in mind the requirements and at the same time trying to keep business operations as smooth as possible.

Certain Financial Institutions are also facing increased challenges when interacting with US based entities, this includes the adhering to information reporting requirements resulting from the US treaty withholding tax relief regime (also referred to as Qualified Intermediary).

In addition, the EU is introducing the amendment to Directive 2011/16/EU on mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (DAC6 for short)

Given the constant changes in the field of tax transparency, it is not uncommon for entities impacted by these rules to change the way they operate in order to ensure that they remain compliant. Furthermore and keeping in mind the added pressure to increase enforcement in the field of tax evasion, it is expected that the relevant authorities will focus more on reviewing reports in more detail than ever before.

DAC6 and disclosure of tax arrangements

The EU is increasing the level of transparency in the tax sphere by another notch in order to detect potentially aggressive tax arrangements. We help you meet DAC6’s massively tightened disclosure rules.

How can PwC help?

Implementing a reporting system within your company can be a time-consuming and expensive process. In addition, the requirements laid out by these rules are not always easy to understand and entities in scope will need to have in place a system to keep up to date. Your business needs to build the necessary knowledge to adapt internal processes and controls accordingly.

Our Regulatory & Financial Crime Consulting Services includes specialists with the knowledge to provide tax consulting, risk, compliance and quality reviews on these areas. Our specialists will be able to review the applicability of tax transparency initiatives to your company, as well as assist in the submission of any report to the relevant authorities.

Contact us

David Ferry

David Ferry

Tax Partner, PwC Malta

Tel: +356 2564 6896

Ramon Navarro

Ramon Navarro

Tax, PwC Malta

Tel: +356 2564 2527

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