Automatic Exchange of Information

The OECD published the Common Reporting Standard (CRS) for the Automatic Exchange of Financial Information on 13 February 2014. Financial Institutions resident in CRS countries will report account holder information to their local tax authorities who will then exchange information with countries where account holders are tax residents.

The CRS is a game changer in the global fight against tax evasion. More than 90 jurisdictions have already committed to adopting CRS and there are more than fifty early adopters, with the first information exchanges to happen in 2017.

CRS will work in a similar way to the United States FATCA regulations,  although it does not itself impose withholding taxes for non-compliance.

In the European Union, CRS will be implemented through the Directive on Administrative Co-Operation. Whilst the United States has no immediate plans to adopt CRS, it is already receiving financial account information through the FATCA regulations. There are very few hold-outs who have not yet agreed to adopt the CRS – Bahrain, Cook Islands, Nauru and Vanuatu.

Please contact us for further information.