Global Tax Reporting
TrustQuay continues to invest and enhance TrustQuay 5Series to provide organisations with a comprehensive solution to support both the regulatory and internal compliance of the growing Global Tax reporting requirements, including US FATCA, UK CDOT and OECD Common Reporting Standards (‘CRS’). Whilst it remains TrustQuay customers’ responsibility to ensure accuracy of submissions to global tax authorities, 5Series provides comprehensive functionality to support global tax reporting as detailed below.
Client and Entity Data
TrustQuay 5Series provides a rich repository of information for client and entity records, which contains the data required by FACTA and the other Tax reporting regimes. Additional user-definable data and other user configurable options are also available.
5Series enables documents / images to be attached to entity records, e.g. Due diligence related documents, e.g. passports, correspondence, self-certification forms. ARR related documents e.g. election self-certifications.
Client and Fund Structures and Entity Relationships
Client and fund structures are maintained using data from the underlying database, with the relationships between entities within a structure identified using the concept of ‘roles’. 5Series uses these relationship links to identify those entities and ‘persons’ whose classification, roles, etc., brings them within the scope of FATCA and the other tax reporting regimes. The classification associated with an entity determines what further analysis is required in order to identify reportable accounts, account holders and Controlling Persons, who are ‘specified persons’ of the US, UK, CDOT and OECD countries. Once a reportable account has been identified, 5Series determines what information is required for reporting purposes, including consideration of the specific requirements of such categories as ‘Trustee Documented Trusts’, ‘Sponsored Closely Held Investment Vehicles’ and ‘Sponsored Investment Entities’.
Workflow for Identification and Classification
Standard workflows will assist the identification and classification of client and entity records under FATCA and the other Tax regimes and with the identification of ‘changes to circumstances’ that may have an impact on the tax categorisation of an entity.
Specific reporting is available to assist organisations when conducting their US, UK, CDOT and OECD Indicia searches.
Reportable Transactions and Balances
TrustQuay 5Series’ multi-entity, multi-currency Accounting Module provides the accounting information required to calculate the majority of the reportable tax values. The 5Series Accounting and Investment modules provide links to appropriate Final Accounts or Entity Valuations to identify the overall Entity value. Account ledgers and individual cash and investment transactions can be identified as required for inclusion in the appropriate section of the tax reporting for the relevant ‘reporting’ entity. Selected general ledger accounts can be designated as requiring “sub-accounting” information, which enables transactions to be recorded at a detailed level, for example, to identify the value of the distributions received during the reportable year by each ‘Discretionary Beneficiary’ of a Trust. 5Series will use the relationships identified within a client structure to determine the correct calculation method for the specific ‘equity interest holder’ category applicable to the reportable person, e.g. Settlor, beneficiary, Shareholder, etc. Users will have the added ability to manually enter the required reportable values against the entity.
Production of Reports for Submission to Tax Authorities
TrustQuay 5Series will produce files as required for US FATCA, UK CDOT and CRS, in the appropriate .xml or other format, for submission to the Tax Authorities in the major jurisdictions where 5Series is used by our customers. Where tax authorities have introduced variations to the standard, we will work to ensure 5Series supports the widest range of formats possible.
TrustQuay 5Series provides the ability to record information required by the UK Alternative Reporting Regime, e.g. Record details of Client Elections. Identify journals for inclusion in ARR reporting.