Industry standard facilitates reporting of FATCA

In the middle of February 2013, the Swedish Ministry of Finance sent a document to the US Treasury Department on how Sweden intends to report the requested control data to combat American tax evasion within the regulatory framework FATCA – Foreign Account Tax Compliance Act. Earlier this year the Norwegian authorities signed an agreement with the US Treasury.

Industry standard facilitates reporting

Where an agreement is reached the transference of information will take place through the Swedish Tax Agency. This means that in Sweden we adhere to the practices and industry standards that have been established regarding who reports to the American tax authorities. 

Niclas Nobrant, product specialist at Itello, explains:

An Industry standard will make it easier for all players, not just those who are obliged to report but also ourselves who develop effective IT solutions to provide data to the Swedish Tax Agency as well as the tax authorities Skatteetaten in Norway and Skat in Denmark. 

Reuse of knowledge simplifies the development work

At Itello we have chosen to link our solution to the industry standard – the reporting of FATCA through each country’s tax authority. We have our responsibilities but in a long-term partnership with our customers they must also take their responsibility too. Obviously our customers’ products are different, but they are configured with the same component-based approach. In the last ten years Itello has reported data for control data to the Swedish Tax Agency for our life insurance customers. The experience of reporting control data to the Swedish Tax Agency means that we will be able to reuse the previous knowledge to solve this kind of problem. Because all of our customers have the same version and data model in Inca it streamlines the creation of a generic solution for reporting. 

 

  • April 2, 2013