New CRS Standards Implemented This Year!
Are You a Tax Resident in one of the Participating Jurisdictions that Owns or Controls an Entity that has Assets or Accounts? Countries All Over the World Are Implementing the Mandatory Reporting Obligation. CRS Reporting Deadlines Are Fast Approaching
The Common Reporting Standard (CRS) is the standard for automatic exchange of financial account information developed by the Organization for Economic Cooperation and Development (OECD). It provides for automatic exchange of information between jurisdictions that adhered to the Standard.
CRS is a broad reporting regime that is modeled after U.S. FATCA. Similar to FATCA, CRS requires financial institutions resident in Participating Jurisdictions to implement due diligence procedures, to document and identify Reportable Accounts under CRS, as well as implement a reporting process.
In layman terms, this means that your financial information, bank accounts, brokerage accounts, investment accounts, trust accounts (and others) will all be shared between the reporting countries.
Do not make the mistake of avoiding proper reporting and risk your assets with governments’ retribution.
Do you own or manage a legal Entity (corporations, partnerships, trusts, and foundations)?
Is your Entity in a Participating Jurisdiction? An Entity’s residence is generally where it is resident for tax purposes.
Not all entities are subject to reporting obligations – but many are!
Can your Entity be considered a Financial Institution? Depository Institutions, Custodial Institutions or Investment Entities. Entities may be considered Financial Institutions if they engage in trading in financial instruments, portfolio management, investing administering or managing Financial Assets.
If your entity has bank or brokerage accounts it is likely to be a Reportable Account.
If you hold directly or indirectly more than 25 percent of the shares or voting rights of an entity as a beneficial owner even if another person exercises control over the management of the Entity (manager of the company) you must verify if you are subject to CRS Reporting.
Contact us to determine if you or your entity is subject to CRS Compliance rules.
Remember!
Whether you engage us or not - contrary to accountants or other advisors - information you share with us enjoys the legal protections of Attorney-Client privileges!
Olga
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