Post by Sapphire Capital on Mar 12, 2017 6:49:40 GMT 4
The Common Reporting Standard (CRS), formally referred to as the Standard for Automatic Exchange of Financial Account Information, is an information standard for the automatic exchange of information (AEoI), developed in the context of the Organisation for Economic Co-operation and Development (OECD). The legal basis for exchange of data is the Convention on Mutual Administrative Assistance in Tax Matters and the idea is based on the USA Foreign Account Tax Compliance Act (FATCA) implementation agreements but goes further.
On May 6, 2014, forty-seven countries tentatively agreed on a "common reporting standard": an agreement to share information on residents' assets and incomes automatically in conformation with the standard, however most apply this only upon request.
Each country will annually automatically exchange with the other country the below information in the case of Jurisdiction A with respect to each Jurisdiction B Reportable Account, and in the case of Jurisdiction B with respect to each Jurisdiction A Reportable Account:[16]
the name, address, Taxpayer Identification Number and date and place of birth of each Reportable Person.
the account number
the name and identifying number of the Reporting Financial Institution;
the account balance or value as of the end of the relevant calendar or, if the account was closed during such year or period, the closure of the account
The totality of the information and its format are governed by a detailed standard.
The OECD does not specify what is reportable—it allows the participating countries to determine what accounts are reportable. "The term “Reportable Account” means a [Jurisdiction A] Reportable Account or a [Jurisdiction B] Reportable Account, as the context requires, provided it has been identified as such pursuant to due diligence procedures, consistent with the Annex, in place in [Jurisdiction A] or [Jurisdiction B]."
This means that either jurisdiction may negotiate and determine its own reportable accounts in its agreement.
On May 6, 2014, forty-seven countries tentatively agreed on a "common reporting standard": an agreement to share information on residents' assets and incomes automatically in conformation with the standard, however most apply this only upon request.
Each country will annually automatically exchange with the other country the below information in the case of Jurisdiction A with respect to each Jurisdiction B Reportable Account, and in the case of Jurisdiction B with respect to each Jurisdiction A Reportable Account:[16]
the name, address, Taxpayer Identification Number and date and place of birth of each Reportable Person.
the account number
the name and identifying number of the Reporting Financial Institution;
the account balance or value as of the end of the relevant calendar or, if the account was closed during such year or period, the closure of the account
The totality of the information and its format are governed by a detailed standard.
The OECD does not specify what is reportable—it allows the participating countries to determine what accounts are reportable. "The term “Reportable Account” means a [Jurisdiction A] Reportable Account or a [Jurisdiction B] Reportable Account, as the context requires, provided it has been identified as such pursuant to due diligence procedures, consistent with the Annex, in place in [Jurisdiction A] or [Jurisdiction B]."
This means that either jurisdiction may negotiate and determine its own reportable accounts in its agreement.