Financial Institutions Struggle with FATCA Compliance CostsJanuary 26, 2015
FATCA compliance has proved to be a costly burden for many financial institutions; expenses have drastically increased since January 2014.
According to a recent survey by Thomson Reuters, many financial organizations expect to exceed their original budgets for 2015 in order to comply with FATCA (Foreign Account Tax Compliance Act). The survey found that 55% of 300 financial institutions anticipate a budget increase for the New Year.
Draining Tax Liabilities
The survey directly follows the Organization for Economic Co-operation and Development’s announcement that 51 countries have signed up for the Common Reporting Standard (CRS), which widens the FATCA reporting scope and puts an immense pressure on budgets.
FATCA reporting deadlines will begin on March 31, 2015 so it is important to adopt proper management reporting practices. For more details, read our article, “FATCA compliance costs are spiraling”.