On May 25th, 2021 the Ministry of Finance (“MOF”) announced in a press release (please see Taiwan Ministry of Finance in Chinese) amendments to certain provisions of their Common Reporting Standard Regulations (“CRS Regulations”).
In order to strengthen financial institutions’ compliance with global CRS, the MOF has introduced on-site reviews to validate the correct implementation and performance of due diligence, enhanced due diligence and fiscal reporting obligations in accordance with its revised CRS Regulations.
The MOF’s step should be seen as an additional efforts by Taiwan to strengthen their measures to combat tax evasion through offshore accounts.
It is our view that that this shift should be understood from the context of the OECD’s Forum on Tax Administration (“FTA”) announcement on December the 8th, 2020.
As part of a virtual plenary meeting held on December 7th and 8th, 2020 the heads of the OECD’s tax administration released–amongst others–a “Guide on Promoting and assessing Compliance by Financial Institutions” (“Compliance Guide”).
In accordance with the Compliance Guide, the FTA members agreed on certain hallmarks and on-site activities to validate and monitor financial institutions’ compliance in-line with their due diligence and reporting obligations under CRS and Foreign Account Tax Compliance Act (“FATCA”).
Along a similar vein, the tax authorities of Hong Kong and Singapore announced back in 2018 and 2019 that they would establish on-site reviews to validate the correct implementation of CRS in their respective jurisdictions; however, the implementation of these revised regulations has not yet gone into effect.
AFS is specialised in the design, review and implementation of CRS and FATCA compliance programs, policies and RegTech solutions.
Based on our depth of experience, we can assist you in establishing policies, procedures and training materials to ensure that you will be compliant with a multitude of tax transparency measures.