ZEDRA, a fast growing trust, corporate and fund service provider, has turned to Sovos to help file tax reports in multiple jurisdictions.
The company must file tax reports in ten jurisdictions before the end of the 2017 Tax Reporting season. Based on its first FATCA filing experience, ZEDRA recognised that its existing systems would struggle to cope with the increased workloads that simultaneous filings in multiple jurisdictions would create. As a result, the company has placed an order with Sovos for its AEOI Reporting solution.
Since its formation in January 2016, ZEDRA has embarked on a rapid growth strategy and currently has more than 370 employees across 11 offices around the globe. As the company has continually expanded, ZEDRA was aware that the number of tax jurisdictions with which they would be dealing with would dramatically increase in the future.
The company’s senior management team therefore recognised that to maintain this rate of growth whilst at the same time maintaining operational efficiencies, they would need to automate their tax reporting processes.
A recent research study* undertaken by Sovos last year found that only 44 per cent of FATCA filings were accurate. The fear of incurring a fine or penalty was the greatest concern expressed by respondents, sharing top spot with ‘damaged reputation.’
Commenting on their decision to choose Sovos, Niels Nielsen, ZEDRA CEO, said, “we are constantly looking at ways to improve processes within our organisation with innovative technology solutions. Sovos provides a unique service to meet the demands of our rapidly growing business needs and reporting obligations.”.
ZEDRA knows and understands the need to embrace leading-edge technological advances in market reporting which is core to the advancement of its company.”
Niels continued, “After our first FATCA filing we saw the pressure that the CRS would put on our internal resources. CRS is inherently more complex than FATCA and we knew that we would need to adopt a scalable technology-based automated solution if we were to achieve successful filings in multiple jurisdictions”.
More than 100 tax jurisdictions have committed to the OECD’s global standard on Automatic Exchange of Information (AEOI) with 54 early adopters undertaking their first exchanges this year. The remaining 47 jurisdictions will exchange in 2018.
The OECD’s AEOI initiative lifts the burden associated with tax compliance with a solution that enables firms such as ZEDRA to fully navigate the global challenges of tax compliance. Recent regulations have created significant additional reporting responsibilities for financial institutions, who must now file information in multiple tax jurisdictions.
As part of the deal, Sovos will also supply ZEDRA with its Taxport Compass Tool, a comprehensive tax compliance information resource that will help ZEDRA stay abreast of the new regulations and updates that are continuously taking place across the globe.
*’Quit Playing With fire; Use Centralised AEOI Solutions to Prepare for FATCA, CRS and CDOT’. June 2016
Read the official press release about the ZEDRA and Sovos contract.
Learn more about the Sovos AEOI solution.
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About the Author
Scott Freedman is director of product strategy for AEOI solutions at Sovos Compliance. Scott has over 15 years of experience in strategic marketing and product strategy. He has worked for business-to-business software and SaaS solution companies like Thomson Reuters, and with Fortune 500 companies as a business consultant. Scott has a background in law and earned his JD and undergraduate degrees from the University of Chicago and University of Illinois.More Content by Scott Freedman