Overview
The Common Reporting Standard (CRS) is an OECD standard which calls on international jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. The Standard requires all reports to be sent electronically in a format known as CRS XML.
To resolve errors related to file preparation and incomplete or inaccurate record information, the CRS Status Message XML Schema was created to check for file and record errors in the CRS XML Schema file.
In this instructor-led, live training, participants will learn:
- the basic structure of the CRS XML Schema and CRS Status Message XML Schema.
- steps for processing these files.
- steps for converting Excel files to XML schema files.
- steps for filing with their respective jurisdiction.
Format of the course
- Part lecture, part discussion, exercises and heavy hands-on practice
Requirements
- General understanding of financial reporting and tax compliance.
- General computer experience.
- General understanding of file formats (e.g., Excel).
Audience
- Financial institution managers
- Regulatory compliance managers and consultants
- Tax administrators
- IT support engineers
Course Outline
Introduction
- CRS as a “successor” to FATCA
- How Automatic Exchange of Information (AEOI) works
- Driving principle: reporting foreign tax residents to their tax administrations
Initiating a CRS Implementation Project
- Implementation roadmap
- Assembling and training the CRS project team
- Outlining CRS procedures
- Modifying contractual terms and agreements
- Setting up classification and reporting systems
- Achieving data collection readiness
- Registering with local authorities
Technical Aspects of Compliance
- Back office and IT requirements
- Data collection and exchange
Overview of XML Document Formats Used in CRS
- Viewing .xsd and .xml files
- CRS elements and attribute names
- Other terminology
Converting Non-XML Files to XML Format
- Converting MS Excel data to XML data
- Converting other formats to XML
Working with CRS XML Schema
- FATCA XML schema as a blueprint for the CRS reporting schema
- Structure of CRS XML Schema
- Validation elements for automated validation checks
- Information required in data elements
- Correcting data items to allow for automatic processing
Locating Required Information in CRS XML Schema
- Financial data that needs to be reported
- Locating the data elements
Working with CRS Status Message XML Schema
- Structure of CRS Status Message XML Schema
- Validating CRS XML Schema
- Processing file errors (fundamental errors)
- Processing record errors (data quality errors)
- Reporting errors
Customizing the Standard Reporting Schema
- Tailoring to local reporting requirements
How CRS Information is Exchanged
- Sample sequence of exchanges between jurisdictions
- Preparing and sending a request
- Receiving and checking a request
- Gathering the requested information
- Replying to the request
- Providing feedback
Approaches to Filing
- Manual vs automated processes for CRS reporting
- Self-developed CRS reporting systems
- External packages that integrate with organisation’s systems
- Online solutions for CRS reporting
- Outsourcing CRS reporting
Communication with Clients and Tax Administrations
- Reporting what data has been transmitted to the authorities
Addressing Technical and Operational Challenges
Leveraging Resources
- Project managers and tax and compliance experts
- Previous FATCA implementation projects
- Documented procedures
- Technical systems
Advanced Topics
- Crafting sample CRS XML files by hand (for technical teams)
Closing Remarks