By: Eojourian & Georgiou LLC
The Common Reporting Standard (CRS) is an information standard for the Automatic Exchange Of Information (AEOI), regarding financial accounts globally, this is between tax authorities which the Organization of Economic Co- operation and Development (OECD) has developed in 2014. It scope is the avoidance of tax evasion.
The CRS requires financial institutions to identify the tax residency of all our customers and in most cases report information on customers who are tax resident outside of the country/jurisdiction where they hold their accounts
“Reportable Person” a Reportable Person is an individual (or entity) that is tax resident in a Reportable Jurisdiction under the laws of that jurisdiction.
There are still countries 100 countries that do not share this information under CRS. In Europe i.e. Serbia, Georgia and Armenia do not share this information.
WHAT YOU SHOULD KNOW:
1.Business Accounts existence before CRS are excluded
If it is a corporate account that was in existence before 2016 and the balance is less than $250,000 no information are authorized to be exchanged under CRS.
2.Moving your Tax Residency
Moving your tax residency for example: tax heaven, your overseas bank will send the information there. There are jurisdictions named ‘Voluntary Secrecy Countries’ and are sending information to foreign countries but they have the option not to receive any information on their citizens or residents.
3.Only shareholders holding more than 25% are disclosed (linked to the Ubo(s) /Controlling person of a company)
CRS applies to the shareholders holds more than 25% of the shareholding structure. A corporate shareholding structure with 5 shareholders holding 20% each, is not reportable, however a complicated structure is considered a high-risk client by default, following close AML monitor by the bank institution.
4.Only financial investments business is reportable under CRS
5.Listed companies are not reportable under CRS (listed under recognized stock exchange)
6.The account balance is reported once a year, 31st December. In case of zero balance this is reported to your home country under CRS.
WHAT YOU SHOULD CONSIDER:
1.Be aware who is completing your CRS and FATCA when you are proceeding with opening of a bank account corporate or individual.
2.Proceed with tax advice and re-structuring, if necessary.
3.ALWAYS, Consult your legal expert.
Contact us to FIND OUT MORE.
Email: [email protected]
LEGAL DISCLAIMERS & RIGHTS OF ‘THE ARTICLE’:
INTELLECTUAL PROPERTY RIGHTS
Unless otherwise indicated, this Article is our property and all its content, published in our website. All are owned and controlled by us and/or any party authorised by us and are protected by copyright and trademark laws. Any other use of this intellectual property without the written consent of the author of this Article shall be considered as violation of such laws and we reserve our legal right for claim.
LEGAL/TAX DISCLAIMER
Any legal and/or tax advice contained in this content was not intended or written to be used, and cannot be used, or interpreted, for the purpose of avoiding complying with, or the application of, penalties under local and/or foreign tax laws and promoting, marketing, or recommending actions to breach any local or foreign laws.
CONFIDENTIAL DISCLAIMER
This Article content was published and intended solely for the use of the individuals and/or entity and/or entities and/or any other to which it is related. If you are not related please do not read, copy, use and/or disclose this Article information. The reproducing, forward, disclosure, copy and use of this Article in any way shall be prohibited and not permitted, unless the written prior consent of the Author is obtained.
