Common Reporting Standard (CRS) Services
The Common Reporting Standard (CRS) is a new way to exchange information between countries and demonstrates a worldwide approach to international regulatory and tax compliance and transparency. Millions of financial accounts with a combined value of trillions are subject to exchange of information between around 100 countries under CRS. The CRS services we provide include CRS advice, classification, due diligence and reporting, helping you to stay on top of your obligations.
What is the Common Reporting Standard (CRS)?
The Common Reporting Standard (CRS) developed by the Organisation for Economic Cooperation and Development (OECD) is the result of the consistent development of the exchange of information of tax-related data among governments. The exchange of information is intended to enable the correct taxation of income and assets, and is an effective tool against tax evasion. The CRS involves the automatic exchange of information and replaces the previous model of information exchange on request as the new, globally dominant standard. By the end of 2019, almost 100 countries have introduced CRS. More jurisdictions are expected to follow in the coming years. In concept, CRS is based on FATCA and envisages an annual exchange of data between tax authorities globally. The tax authorities receive the corresponding data from the local financial institutions.
Although the Common Reporting Standard (CRS) follows a model OECD agreement, in practice implementation involves a lot of details and specific factors that have to be taken into account. This requires an early analysis of the individual situation by our tax, legal and accounting experts. Careful legal and tax planning is based on efficient accounting preparation of the data that is to be transferred via modern digital tools. These are essential for the timely, cost-effective and factually correct transfer of the relevant data.
The Common Reporting Standard (CRS) process
Financial Institutions covered by the Common Reporting Standard (CRS) are custodial and depository institutions, investment entities and specified insurance companies. These financial institutions must report financial information with respect to reportable accounts to the local tax authorities. This includes interest, dividends, account balance or value, sales proceeds or income generated from financial assets. Reportable accounts can be held by individuals and entities, which also includes trusts and foundations. The relevant tax authority will then send the financial information received to the relevant partner jurisdictions within its CRS exchange network.
Who is affected by the Common Reporting Standard (CRS)?
The Common Reporting Standard (CRS) was introduced to improve tax transparency with a view to maximising efficiency for the affected authorities and financial institutions. An effective exchange of financial information requires authorities to implement the standard into local law, establish an international legal framework for the exchange and to set up the necessary technical infrastructure. The reporting institutions are as well challenged as they are required to fulfill the country-specific reporting and due diligence requirements. KENDRIS can help you to fulfill these requirements.
Download the CRS country deadlines guide for free if you do not know which reporting deadlines apply. - CRS country deadlines guide.
Our CRS Service Solution
We can support you in fulfilling your CRS reporting obligations in the following ways:
- Classification: All companies, trusts, foundations and partnerships are considered entities under CRS. KENDRIS can assist you in classifying them as Financial Institutions, active or passive NFEs according to the applicable CRS legislation.
- CRS Impact Assessment: As part of our CRS services, we perform CRS impact assessments to include recommendation if remedial action is required.
- Due Diligence Processes: We consult clients on how to implement due diligence processes and CRS compliance programs in order to identify reportable accounts and the financial information to be reported under each regime.
- Reporting: KENDRIS’ CRS services also include the timely filing of regulatory reports with tax authorities on your behalf. We have reporting schema templates for more than 30 jurisdictions and use a secure reporting software hosted in Switzerland.
- Tax administration queries: We can support you in responding to tax administration queries by providing the requested information.
Our CRS reporting service solution: