Luxembourg: Tax authorities begin FATCA and CRS audits
Audits involve thorough reviews of policies, controls, procedures, and IT systems
Audits involve thorough reviews of policies, controls, procedures, and IT systems
The Luxembourg tax authorities (ACD) have begun on-site audits for compliance with the FATCA and common reporting standard (CRS) due diligence and reporting obligations.
Before the audit, the ACD requires numerous documents and information within a strict deadline. These audits involve thorough reviews of policies, controls, procedures, and IT systems related to reporting and due diligence.
Taxpayers will need:
- Entity-level processes and procedures, including a "register of actions" (introduced by the updated FATCA/CRS law of June 2020)
- Strong IT systems for reporting and due diligence
- Consistent self-certification forms
- Sufficient internal or external control processes to identify and mitigate non-compliance risks
Read a March 2024 report prepared by the KPMG member firm in Luxembourg\
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