Rolls out Vizor AEOI software solution for cross-border information exchange under the OECD Common Reporting Standard
In order to effectively fulfill its commitments for the Automatic Exchange of Information (AEOI) under the Organisation for Economic Co-operation and Development’s (OECD) Common Reporting Standard (CRS) framework, the Ministry of Finance rolled out an international software solution from Vizor AEOI Software earlier this week.
After an open-bidding process in December 2017, the Visor AEOI solution was selected, according to government.
With a contract value of $1,745,000, for a period of five years, the solution is already used by competent authorities in over 10 jurisdictions, to meet their Foreign Account Tax Compliance Act (FATCA), CRS and country-by-country (CbC) Reporting requirements.
The Bahamas will use the industry-leading Vizor AEOI solution to meet its commitment under the CRS and to continue honouring its exchange commitment under the FATCA with the Internal Revenue Service (IRS), the government said.
The first CRS exchanges of information by The Bahamas to partner jurisdictions will occur in September 2018 and continue each year thereafter.
“The Ministry of Finance (MOF) is upgrading its digital infrastructure in a number of areas to strengthen its international compliance activities,” said Acting Financial Secretary Marlon Johnson.
“This new software platform will enhance substantially our capacity to meet our local and international reporting requirements and commitments, consistent with global standards of efficiency and efficacy. The MOF is pleased to work with Vizor, a leading provider of cross-border tax information exchange solutions, to meet our goal of maintaining a well-regulated and transparent environment.”
The Bahamas signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters on December 15, 2017, making it the 116th jurisdiction to join. On the same date, The Bahamas also signed the Multilateral Competent Authority Agreement (MCAA), and joined the inclusive framework on Base Erosion and Profit Shifting (BEPS).
A notable feature of the software is an easy to use online portal, accessible by Bahamian Financial Institutions (FIs) to register and report the required account data, either via a manual entry option or via XML, to the competent authority. This will help ensure maximum compliance from FIs in the first year of reporting.