Why tax advisers need to understand FATCA and CRS

Key points

• FATCA and/or CRS can apply to a far wider range of entities and circumstances than many of us might expect.
• Clients who are affected will often look to their tax adviser or other professional to assist with meeting their FATCA and CRS obligations.
• Many clients may be unaware of FATCA and CRS so might perhaps benefit if their professional adviser alerted and advised them.
• In some circumstances a professional firm may have FATCA or CRS obligations of its own.
• Professional advisers should review their engagement letters and client take-on procedures to ensure that FATCA and CRS are adequately catered for.
• Professional firms should consider whether their staff and partners are sufficiently knowledgeable about FATCA and CRS; or if not whether additional training is needed.
• The potential risks from non-compliance are significant including financial penalties and reputational damage.

What are FATCA and CRS? ‘FATCA’ stands for...