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Automatic Exchange of Information (AEOI) - detecting and deterring tax evasion

Beginning with the Foreign Account Tax Compliance Act (FATCA) in 2014 and additionally the Common Reporting Standard (CRS) in 2016, new international agreements involving a large number of countries have come into force to help tax authorities find and stop tax evasion, especially relating to assets held in countries where the owner is not resident for tax purposes.

These international agreements, when implemented, create a legal obligation requiring all financial institutions, including Barclays, to:

  • Obtain extra information from customers;
  • Identify a possible connection, for tax purposes, with another country / other countries;
  • Establish the tax residence of all account holders; and 
  • Report the financial account information for identified customers to the relevant tax authorities.
  • Barclays is now required by law to obtain additional information and documentation from customers, both corporate and individuals, in order to correctly identify a person’s residence for tax purposes when opening a new account. Usually a person will be tax resident in the jurisdiction where they live and pay tax, but the rules vary between countries and will depend on individual circumstances. In addition to collecting tax residency information under CRS, and for the purposes of complying with our legal obligations relating to the identification of US Persons under FATCA, we also need to consider US citizenship, which can apply regardless of where the person lives.

     

    Barclays is also required to review existing accounts to ensure that individual and entity accounts are correctly identified, classified and reported where required. In some cases this will require Barclays to request further information or documentation from existing customers.

     

    Barclays will contact customers if additional documentation or information is required to establish an account holder’s tax residence and/or US citizenship.

     

    In order to maintain the correct information we require our customers to inform us of any change in circumstances that would impact on their tax residency and/or US citizenship. If you are unsure about your tax residency status and/or US citizenship, you may wish to contact your professional tax adviser or your local tax authority.

     

    Many tax authorities offer assistance and opportunities for taxpayers to get their tax affairs in order if they are concerned that they may have undisclosed income and gains. You may wish to wish to speak with a professional tax adviser who can help you.

     

    The HMRC Worldwide Disclosure Facility (WDF) is designed for UK taxpayers to regularise their tax affairs in advance of the information exchange under the Automatic Exchange of Information (AEOI) agreements. Information regarding the HMRC WDF is available in link below.

     

    Please note Barclays does not provide tax advice.

     

    HMRC Worldwide Disclosure Facility
    HMRC Quick Guide: Automatic Exchange of Information – information for account holders (PDF 277KB)
    FATCA and the UK’s Automatic Exchange of Information Agreements aiming to combat tax evasion
    Further information on FATCA from the US Inland Internal Revenue Service (IRS)

  • Under these agreements all financial institutions, including Barclays, have a legal obligation to report customers’ financial account information to the relevant tax authorities based on tax residency and/or US citizenship.

     

    These customer information returns include relevant financial account information such as, names, addresses, country of tax residency, tax identification number, balances, interest, dividend payments and gross proceeds in connection with disposals.

     

    We are required to use the information we have collected from customers to determine whether or not they should be included in any relevant information returns to HMRC or other tax authorities. If we request information from customers that would enable us to exclude them from the reporting requirements and are unable to obtain it, the legislation requires that their financial account details be automatically included in the returns to the relevant tax authorities.

  • FATCA is a piece of US legislation that was designed to improve tax compliance by US persons, both individuals and entities, as they are required to report their worldwide income to the US Internal Revenue Service (IRS) on an annual basis, regardless of whether or not they currently reside in the US. FATCA requires global financial institutions to identify all reportable US persons within their client base and provide information on such accounts to the appropriate tax authorities.

    Since January 2015, Barclays has been required to annually report information to the tax authorities concerning the accounts of US persons and certain US owned entities. The reports are submitted either to local tax authorities or directly to the IRS if the country does not have an Intergovernmental Agreement (IGA) in place. Where the information is provided to local tax authorities, this will subsequently be sent to the IRS by them.

    Find out more about FATCA on the IRS website

    FATCA Withholding Tax

     

    To encourage compliance with the FATCA requirements to identify US owned accounts, the US introduced a 30% withholding tax on non compliant parties that may be applied to US source income in certain circumstances, as follows:

     

    Entities may be reported, classified as non-compliant, and be subject to withholding tax if they don’t provide the required documentation. If individuals don’t provide the necessary documents, they may be reported to the tax authorities in line with the information we hold.

    Barclays GIIN

     

    The Barclays Group has registered with the IRS for FATCA purposes and the GIIN for Barclays Bank PLC in the UK is E1QAZN.00001.ME.826.

     

    If you require a GIIN for another part of the Barclays Group or a Barclays branch outside the UK, please contact your usual Barclays contact to obtain the GIIN for that entity or branch.

     

    For your information, the IRS list of all registered Foreign Financial Institutions is publicly available on the link below and the IRS plan to update this list monthly.

    FATCA Foreign Financial Institution (FFI)

  • The Organisation for Economic Co-operation and Development Common Reporting Standard (CRS) was signed in October 2014. It aims to combat tax evasion on a global scale by sharing information on financial accounts where there is an indication of the account holder having a connection for tax purposes with another participating jurisdiction.

    Since these regulations went live on 1 January 2016, over 100 participating countries have adopted the CRS, including the UK.

    Under the regulations, we are required to collect information from customers and, where applicable, report specific details to the relevant tax authorities.

  • Barclays may request that customers download and print the relevant form(s) to complete their self certification, Barclays will contact customers if this is required.

    Individual self certification form (PDF 179KB)
    Individual self certification guidance notes (PDF 336KB)
    Entity self certification form (PDF 223KB)
    Entity self certification guidance notes (PDF 187KB)
    Controlling Person self certification form (PDF 188KB)
    The IRS W-9 form and instructions (PDF 128KB)

    Clients of the Corporate Bank who are opening Barclays International Corporate accounts should select the country specific self certification form below. Please note the country reflects where the account is opened:

    Entity self certification form - France (PDF 333KB)
    Entity self certification form - Ireland (PDF 333KB)
    Entity self certification form - UAE (PDF 332KB)
    Entity self certification form - Germany (PDF 333KB)
    Entity self certification form - Portugal (PDF 330KB)

    Please note if you are a client of the Corporate Bank opening a Barclays International Corporate account in a country that is not listed above, please complete the following:

    Entity self certification form (PDF 223KB)*

  • Barclays may request that customers download and print the relevant form(s) to complete their self certification, Barclays will contact customers if this is required.

    Individual self certification form (PDF 171KB)
    Entity self certification form (PDF 223KB)
    Entity self certification guidance notes (PDF 328KB)
    Controlling Person self certification form (PDF 188KB)
    The IRS W-9 form and instructions (PDF 128KB)

    Once you’ve completed the form, please return it in the envelope provided with your initial letter. If you don’t have it – don’t worry, just post it back to us on the address below.

    BUK Tax Operations Team
    Barclays Bank UK PLC
    Draper House
    Saffron Road
    Leicester
    LE87 2BB