Common Reporting Standard (CRS)
Common Reporting Standard (CRS) is the new way to exchange information between countries and demonstrates a worldwide approach to international regulatory and tax compliance.
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 to 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 2018 it is anticipated that more than 100 other countries will have introduced the Common Reporting Standard (CRS). In concept, it is based on FATCA and envisages an annual exchange of data between tax authorities. 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.
We can support you in fulfilling your obligations in the following ways:
- Classification of entities for CRS
- CRS impact assessment to include recommendation if remedial action is required
- Identification of reportable accounts and the information to be reported under each regime
- Due diligence processes and compliance programs: assistance in implementation
- Timely reporting to relevant tax authorities
Do not hesitate to contact our experts.