Engagement Contract with Baker Tilly
On August 02, 2018, Baker Tilly, Audit, tax and consulting, signed a contract with Ministry of Finance whereby the Firm will provide the Ministry with the automatic exchange of information (AEOI) system to implement the Common Reporting Standard (CRS) allowing the Ministry to report the information related to such Standard.
This engagement contract was concluded following the considerable success that the Ministry has previously achieved with Baker Tilly in implementing a similar project with respect to fulfilling the State of Kuwait’s FATCA obligations towards US Department of the Treasury.
In this connection, Mr. Hisham Sorour, Managing Partner in Baker Tilly, said “the system is capable of receiving the reports and automatic exchange of financial account information for tax purposes in accordance with the Common Reporting Standard ( CRS ) issued by the Organization for Economic Cooperation and Development (OECD). Such requirements are intended to limit tax evasions”.
Mr. Sorour added: “State of Kuwait accession to international treaties, including CRS, is just a step in the course of a leading strategy and vision adopted by the State of Kuwait to encourage information transparency among the world countries and create a balanced economic climate with the countries participating in the Convention through fighting tax evasion around the world and improving international tax compliance.
CRS Implementation in the State of Kuwait
It is worth mentioning that on 19 August 2016, the Government of the State of Kuwait signed the CRS Multilateral Competent Authority Agreement with the Organization for Economic Cooperation and Development for exchange of information for tax purposes.
Subsequently, the MoF in Kuwait issued the Resolution No. (36) Of 2017 and Resolution No. (18) of 2018 concerning the Guidelines for Implementation of the Requirements of International Conventions on Tax Information Exchange”. The financial institutions are required to collect the information in accordance with the terms stipulated in CRS and interpretations thereof. Furthermore, the Ministry of Finance issued Resolution No. (46) of 2017 regarding Additional Guidelines concerning Implementation of the requirements of International Conventions on Tax Information Exchange” whereby the financial institutions should submit the required reports not later than 15 August 2018 for the financial year ended 31 December 2017.
Baker Tilly Services related to CRS
Baker Tilly provides integrated set of consulting and training services related to the Common Reporting Standard CRS applications including preparation of CRS GAP analysis report, developing CRS policy and procedures, providing ICT consulting services for CRS data classification and data security and conducting training courses and workshops.
Since Baker Tilly is a certified firm with Ministry of Finance for provision of assurance services – as stated in the Resolution No. (46) of 2017 on the Additional Guidelines concerning Implementation of the Requirements of International Conventions on Tax Information Exchange – Baker Tilly provides assurance services for CRS Classification Attestation, CRS Reporting Procedures Attestation and Issuance of Annual/ On Demand CRS Compliance Certification for financial institutions about the extent of compliance with CRS requirements and integrity of processes and procedures in place.
About Baker Tilly
Baker Tilly in Kuwait is an independent firm providing audit, assurance, tax, consulting and training services and independent member of Baker Tilly International, a UK-based network of high quality, independent accountancy and business consulting services firms. According to the ranking made by International Accounting Bulletin in January 2018, Baker Tilly International maintained its ranking as one of the world’s top ten accountancy and business advisory networks.
In audit and assurance, we provide financial statements audit and all assurance reports. In tax, we provide income tax and other tax services. In consulting, we provide accounting, risk management, internal audit and many other services. Baker Tilly in Kuwait is an independent member of Baker Tilly International UK-based network