A BearingPoint Accelerator

Transcription

1 BE Tax Reporting Solution A BearingPoint Accelerator With BearingPoint s tax reporting solution, financial institutions will be able to cover their entire reporting needs under many tax regimes, such as FATCA, the new reporting standards for the Automatic Exchange of Information and the Swiss Final Withholding Tax, as well as to cover the country specific tax filings of their wealth management clients.

2 < Contents Market Drivers Our Approach Client Benefits References Contact

3 < Market Drivers In light of newly introduced regulation such as FATCA, UK-FATCA for CDOT and the alternative reporting regime, as well as the upcoming «Automatic Exchange of Information» based on the OECDs CRS, many financial institutions will be exposed to new authority reporting. Many of these regulation will be implemented based on bilateral agreement between countries. Such bilateral agreements will eventually also lead to different reporting data and format in the various countries. The implementation will thus be a challenge in particular for financial institution with reporting entities in many countries. At the same time, financial institutions will be facing an increasing demand from their wealth management clients to receive a high quality tax report for their wealth, income and capital gains taxation, based on their resident countries tax laws. Our solution encompasses software and consultancy to support financial institutions in the implementation of the new requirements for their reporting processes. Both: to comply with regulatory requirement to report data to the IRS or local tax authorities and to serve clients with individual tax reports

4 < Our Approach Our clients enter into a licensing and maintenance contract with us to purchase the EasyTax and FiTAX software solutions. We support the client to develop the interface and to integrate the software solution. The client can either implement EasyTax or FiTAX, each with its own standard interface, or the client can implement both solutions over a single interface. In the latter case, both solutions are connected (for data loading and data correction) via the «Gecko» solution. We provide IT and business user training, and support the client in the testing and in the pre-production activities. Upon request, we can also support the actual report production. Once the client is in production mode, they are connected to our support desk and via our ticketing system to receive ongoing maintenance and support.

5 < Our Approach External tax data providers Tax data per ISIN Banks systems Client management Account handling Securities processing Cash payments Loans management Client tax statement (e.g. German wealth management client) based on local tax law on the treatment of income from interest and dividends, wealth and capital gain Tax data warehouse / middle-layer BearingPoint Tax solutions Tax report (electronic & encrypted file) delivered to local tax authorities or IRS Financial institutions are currently reviewing their functional and IT architecture for tax reporting. Best-practices applied include the implementation of a tax data mart or middle layer, which feeds the data to specialised tax engines. Furthermore, many financial institutions have also started to review their operations deployment model. The trend is going for the centralisation of the tax reporting skills in a shared service center structure. The central tax reporting team then produces tax reports for many entities across the group. Both EasyTax and FiTAX from BearingPoint fit nicely into such strategic initiatives.

6 < Our Approach Month 1 Month 2 Kick Off Client BearingPoint Funct./IT requirements Assistance EasyTax/FiTAX Release Deploy Assistance Settings Assistance Data Interfaces Assistance Month 3 Month 4 Month 5 Key User Training Test cycles Internal Training Reporting Production Assistance / Pre & Post-production support Main implementation of BearingPoint support activities include: Provide the software and documentation Review the data interface design & specifications Support the installation of the software Support test activities Provide initial production support (usually in the first year of report production) Ad-hoc assistance and guidance on any matter related to the running of the software.

7 < Client Benefits With BearingPoint s software solutions EasyTax and FiTAX, financial institutions can comply with all their tax reporting requirements using a single platform. Our tax concept/rules applied in the software are based on a tax concept taken from our Big4 tax advisor partners. Clients benefit from BearingPoint s 14 years of experience. Changes in tax laws / new requirements are monitored by BearingPoint and the software is adjusted accordingly. Client community we organise regular events, thus providing business networking opportunities to our clients. Our software solutions can also be used in an outsourcing mode. Interested clients can enter into an agreement with our service partner Deloitte Tax Reporting Services Ltd.

8 < References Our clients include: Large international financial institutions providing services to private & wealth management clients Regional retail banking groups Business-to-Business service providers in the financial sector Major achievements include: More than 40 banks in Switzerland implemented the Swiss Final Withholding Tax requirements (calculation, booking and reporting of source taxes for UK and Austrian banking clients) in due time during 2012 and More than 60 banks with reporting entities in more than 45 countries have started to implement FiTAX to cover the FATCA and CDOT (UK FATCA) reporting requirements.

9 < Contact Ronald Frey Partner BearingPoint Switzerland Fabrice Chatelain Senior Manager BearingPoint Switzerland Mathias Wegner Senior Manager BearingPoint Switzerland About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: and BearingPoint. All rights reserved