Set-back in the Automatic Exchange of Information quest as over half the initial reports may be inaccurate

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Recent data has shown inaccuracies in many initial reports conducted by qualifying financial institutions as per the Common Reporting Standard for the automatic exchange of information. According to Sovos, a tax software company, the reports will be need to be written off as invalid and resubmitted accordingly. 29 countries will require CRS submissions from May and June 2017, putting huge stress on banks to report extraordinary volumes of data in arrangements that vary greatly between jurisdictions. For example, Sovos states that India’s tax authorities require both the account-holders’ parents’ dates of birth, which is unheard of in many other countries.