NRI Accounts reporting to USA, UK & 85 other TAX

Transcript:NRI Accounts reporting to USA, UK & 85 other TAX:
NRI Accounts reporting to USA, UK & 85 other TAX OFFICES CA RAJESH H DHRUVA www.nribanks.com (best interest rates for NRIs) femaonline.com (fema & regulations – as on date) www.nrimutualfunds.com FATCA AGREEMENTS & CRS INITIATION : The problem of Cross Border Tax Evasion and unaccounted / Black Money parked abroad has bothered countries across the globe for a long time. The economic catastrophe of 2008 resulting in diminishing levels of Government Treasuries awakened Tax Authorities and first time prompted collective combat action against tax evasion which was partially to enhance tax collections too. USA has initiated the War against tax evaders with enactment of Foreign Account Tax Compliance Act (FATCA) in 2011. After 2 years G-20 Leaders endorsed Automatic Exchange of Information of Tax Matters , eventually approved as a Standard in July 2014 by Organization for Economic Co-operation and Development(OECD). AND now by end of 2016, 87 countries including 20 G-20 Countries and 35 OECD member countries are signatories to Multilateral Competent Authority Agreement (MCAA). Government of India signed the IGA with USA on 9th July 2015 & on 7th August Central Board of Direct taxes (CBDT) issued notification S.O. 2155 (E) by way of Income Tax (11th Amendment) Rules 2015 & insertion of Rule 114F :114G & 114H in I.T. Rules1962 and Form 61-B. CA RAJESH H DHRUVA femaonline FATCA AGREEMENTS & CRS INITIATION : 6. US Government has initiated agreements with various Governments requiring their financial institutions to provide requisite information of all US citizens and USA addressees to IRS from 30th September’15. 113 countries have also signed Inter Governmental Agreement (IGA) with USA. India has signed IGA on 9th July 2015. Following the footsteps of USA Foreign Account Tax Compliance Act (FATCA) agreements of OECD 35 Nation members and G-20 Nation Members have agreed for automatic exchange of financial information thereby Common Reporting Standards (CRS) were framed. As on date 87 countries have adopted CRS & most affecting countries are UK , South Africa , Belgium, Australia, New Zealand, Spain and Portugal. Small countries like Kenya , Uganda and Tanzania are also in process of joining CRS. UAE has already signed FATCA Agreement with USA. CA RAJESH H DHRUVA femaonline APPLICABILITY OF FATCA - CRS 1. APPLICABLE TO : Indian Financial Institutions being : .01 Banks including Cooperative Banks .02 Insurance Companies. .03 Mutual Fund Houses / AMCs .04 Depository Participants (Demat Service Providers) including Stocks