Monday, August 31, 2015

OECD Automatic Exchange of Information & Common Reporting Standards

In July 2014, the Organisation for Economic Cooperation and Development (“OECD”) published the Standard for Automatic Exchange of Information (“AEoI”) in Tax matters (herein the “Standard”). The goal of the Standard is to improve cooperation between tax administrations, protect the integrity of tax systems and to clamp down on offshore tax evasions. Amongst the four documents found in the Standard, the Common Reporting Standard (“CRS”) contains the due diligence rules for which Financial Institutions (“FIs”) have to collect and exchange information. This consistency of information exchanged ensures predictability and quality of data analysis and facilitates the optimal use of information by jurisdictions. The OECD further published the CRS implementation Handbook in August 2015 to provide practical guidance to assist government officials in implementing the Standard.