Keeping up with Tax Banking & Capital Markets - 2023 Summer edition
Welcome to the 2023 Summer edition of Keeping Up With Tax for Banking and Capital Markets, picking up on a range of current hot topics relevant to our industry.
We hope that you and your family are doing well and you are ready for a wonderful summer break!
In this release we cover the latest tax developments that require our industry’s attention. Specifically, the articles cover the following areas:
- Customer Tax Integrity – Insight on the key principles and best market practices;
- CESOP: The upcoming EU transactional reporting regime for PSPs;
- The new QI agreement;
- The EU’s ECOFIN Council updated list of non-cooperative jurisdictions for tax purposes;
- The suspension of access to the RBE following the CJEU decision.
Please feel free to get in touch with us or your regular PwC contacts if there is anything that you would like to discuss further. Please also let us know if there are any topics that you would like us to cover in upcoming editions.
Kind regards,
Murielle Filipucci
Customer Tax Integrity – Insight on the key principles and best practice markets
Customer Tax Integrity (CTI) aims to encompass the growing number of regimes, rules sets and expectations in respect of how Financial Institutions (FIs) deal with issues relating to the risks of engaging in or facilitating tax evasion or aggressive tax avoidance when dealing with their customers and clients. This issue is of particular relevance to FIs given the regulatory and social responsibility they are deemed to have as intermediaries in and gatekeepers of the financial system.
CESOP: New transactional reporting regime for European payment service providers
From 1 January 2024 onward, all payment service providers (PSPs) in the EU will be required to report certain cross-border payment transactions processed for their clients. The proposed rules are part of the so-called CESOP (Central European System of Payment information) regulations (Council Directive (EU) 2020/284 and Council Regulation (EU) 2020/283) in the framework of the EU’s action to combat VAT fraud.
The new QI agreement
The IRS published at the end of last year the Revenue Procedure 2022-43 with respect to the renewal of the final Qualified Intermediary (QI) agreement.
The new QI agreement is effective as from 1 January 2023, and has introduced a complex set of documentation, withholding and reporting rules relating to payments from publicly traded partnerships (PTP). It also includes additional certification requirements.
EU’s ECOFIN Council releases updated list of non-cooperative jurisdictions for tax purposes
On 14 February 2023, the EU’s ECOFIN Council approved the latest list of non-cooperative jurisdictions for tax purposes. Four jurisdictions—Russia, British Virgin Islands, Costa Rica and Marshall Islands—were all added to Annex I (the so-called blacklist). No countries were removed from the previous list (published in October 2022). Annex II of the list (grey listed countries) was also updated with Albania, Aruba and Curaçao added, while North Macedonia, Barbados, Jamaica and Uruguay have been removed from the grey list.
Suspension of access to the RBE following the CJEU decision
The Court of Justice of the European Union (CJEU), in a judgement on 22 November 2022, decided to suspend public access to the Register of Beneficial Owners (RBE), in order to guarantee the respect for privacy and the protection of personal data provided for in Articles 7 and 8 of the Charter of Fundamental Rights of the Union adopted in 2000.
