The fight against tax evasion and the protection of the integrity of tax systems requires the cooperation between tax administrators. The exchange of information is a fundamental aspect of that cooperation.
About the CRS
The Common Reporting Standard (CRS) was developed by the Organisation for Economic Co-operation and Development (OECD) with G20 countries and in close cooperation with the EU.
On 20 July, 2013, the G20 leaders endorsed the OECD proposals for a global model of automatic information exchange as the expected new standard on information exchange. This directive was carried out on 13 February, 2014, when the OECD released the CRS and model Competent Authority Agreement (CAA). On 15 July, 2014, the Council of the OECD published its detailed commentary on both the CRS and Model CAA. CRS draws heavily on FATCA and thus is closely aligned to the Model 1 IGAs, although in a wider and more global sense.
The aim of the CRS is to allow tax administrators to have systematic knowledge for tax purpose of financial assets held abroad by their residents.
CRS will be implemented on 1st January, 2016 for countries who have committed to the preliminary annual exchanges in 2017. The information about a client’s current tax residency will become part of our procedures for ensuring an in-depth knowledge of our clients.
For more information on OECD - Common Reporting Standard (CRS) please click here.
The above information is intended to provide general guidance only and is not an exhaustive analysis of all provisions of CRS and are not intended to serve as tax advice. If you are uncertain of your CRS status or the impact of this regulation, please consult a professional tax advisor.