Luxembourg: Increased scrutiny on FATCA and CRS compliance
Based on updated version of CRS FAQs issued in April 2022
Based on updated version of CRS FAQs issued in April 2022
The Luxembourg tax authority is conducting reviews of the FATCA and common reporting standard (CRS) compliance of investment funds and other Luxembourg entities administered or resident in Luxembourg, based on the updated version of the CRS “frequently asked questions” (FAQs) issued on 4 April 2022. Read TaxNewsFlash
In particular, the tax authority is sending letters to all investment entities listed in questions 2.3 and 2.4 of the FAQs that have not submitted FATCA and CRS returns or have submitted incoherent information in their FATCA and CRS returns, requesting:
- Clarifications in case of sudden change of entity classification and evidence of non-reporting status under applicable laws
- Additional missing documents
- Process and procedures at the level of the entity or management company
- The “Register of Actions” (as introduced by the updated FATCA/CRS law of June 2020)
- Additional information/explanation on incoherent information (number of investors, account balance, account closure) following their review of the FATCA and CRS reports
- Entity classification check based on entity type and CSSF (Commission de Surveillance du Secteur Financier) classification (especially for regulated entities)
- Self-certification forms of investors
- Additional information on the account holders’ country of residence
Read a September 2022 report prepared by the KPMG member firm in Luxembourg
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