The National Taxation Bureau Will Soon Conduct Inspections on Implementation of the Common Standard on Reporting and Due Diligence for Financial Institutions. Reporting Financial Institutions Shall Se
According to the National Taxation Bureau of Kaohsiung, Ministry of Finance, in order to confirm that financial institutions have complied with the requirements of the "Regulations Governing the Implementation of the Common Standard on Reporting and Due Diligence for Financial Institutions" (hereinafter referred to as the "CRS Regulations") in handling due diligence and reporting operations, starting from August 2023, it will carry out the 2023 due diligence review of financial account information for tax purposes and reporting operation selection inspection, targeting the reporting financial institutions within the jurisdiction.
The Bureau explains that, the above-mentioned inspection operations are based on the principle of document inspection, and the National Taxation Bureau will send a letter with the "Questionnaire for Inspection of Reporting Financial Institutions’ Implementing the Common Standard on Reporting and Due Diligence Operations" to the financial institution under inspection. The institution should complete the questionnaire and submit the relevant documents as scheduled. If there are any abnormalities as assessed through the document inspection, the National Taxation Bureau will conduct on-site inspections to clarify the reasons and track the correction of deficiencies, in order to ensure the completeness and accuracy of the due diligence process and reporting information.
The Bureau points out that, based on the results of the inspections conducted in 2022, it was found that most of the reporting financial institutions had established internal regulations to ensure compliance with the requirements of the CRS Regulations, but some of the inspected institutions were still found to have deficiencies in internal management, due diligence, and reporting, such as not specifying the retention period of reporting documents in the CRS process, lack of complete self-certification documents in English, failure to verify the correctness of the tax identification code, or omission of part of the information to be reported.
The Bureau urges reporting financial institutions to conduct self-examination in advance to avoid continuing to have the abovementioned reporting deficiencies. The relevant inspection operation flowchart and questionnaire template as well as the 2022 inspection deficiency summary regarding important institutional or common aspects have been posted on the Bureau's website (https://www.ntbk.gov.tw/Themes/Taxation/Income Tax/ Anti-tax Avoidance Rules), for your reference.
Contributing Unit:Sales Tax Division
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Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8bec572649a244ffb763dda395a411d4