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BBSI, OI, FATCA Taxation and Interest Reporting System

DOWNLOAD: Whistlebrook TIRIS Overview

Background

On 3rd June 2003 the European Union Savings Directive (EUSD) was agreed as a way to counter cross border tax evasion. Formally Section 17 and 18 reporting, the latest UK incarnation; Bank and Building Society Interest (BBSI) and Other Interest (OI), coupled with the Foreign Account Tax Compliance Act (FATCA) pose a new set of challenges for financial institutions.

The aim is to counter cross-border tax evasion by the collecting and exchanging of information about foreign resident individuals receiving savings income outside their resident state. The belief being the exchange of information between tax authorities is the best way to ensure that individuals pay the right amount of tax on cross-border income from savings.

HMRC will inform financial institutions via written notice (usually in February) when they want them to complete a return. The notices requires that you make a return stating the interest you have paid or credited and to whom over the tax year specified in the notice.

Failure to complete returns once requested will be met with financial penalties

BBSI & OI

BBSI and OI reporting replaces type 17 and 18 reporting. However, the government aims to keep the revised reporting obligations as close as possible to type 17 and 18 reporting.

BBSI and OI returns have two parts:

  • customers resident in the UK
  • customers reportable under the  European Savings Directive (EUSD)

Each of the above has a separate return but in TIRIS we generate a joint return covering both sets of customers.

FATCA

The United States Treasury and the IRS put in place a regime of intergovernmental agreements (“IGAs”) between the United States and other jurisdictions to implement FATCA. The USA has entered into IGAs with 39 jurisdictions, including the UK. Additional agreements have been made in substance with respect to an IGA with another 62 other jurisdictions.

Any Financial Institution (FI) from a country in an IGA with the USA will be required to share information on any interest earned by a ’reportable person’.

Who will be affected?

  • Fund managers
  • Banks and Building societies
  • Insurance companies
  • Accountants/Solicitors managing trusts

Which accounts must you report on?

You must report on all accounts that have interest paid or credited for any investors who are:

  • Persons (including associations, companies and clubs) with UK addresses.
  • Individual investors who have an address in a ‘Fully Reportable’ (FR) country.

How we can help

Whistlebrook has been working in this arena for over 10 years, we therefore understand the challenges FIs are facing with the implementation of FATCA, BBSI and OI. Using this experience we have developed TIRIS, an intuitive and straight forward solution that will allow you to create your interest reports with ease.

TIRIS was created from ‘WIRES’, our very successful regulatory reporting solution, which has been adopted by more than 25 FIs ranging from small investment managers to two of the top 3 building societies.

Using the WIRES model as the basis for TIRIS has meant we have created a solution that has a tried, tested and accepted process.

Product Features

Insight from end users and our skills as Microsoft Gold Partners has allowed us to develop a product which is straightforward and easy to use yet rich in useful product features.

  • Data loading from source systems
  • Data cleansing
  • Full audit trail
  • Change in circumstance alerting
  • File generation
  • Single Customer View for FSCS compensation  limits

 

TIRIS is part of the Whistlebrook Financial Institutions Product Portfolio (FIPP)

 

 

 

 

 

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Whistlebrook Ltd.
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Tring, Herts HP23 4JY
UK
Phone: +44(0) 1480 309550
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