OECD had approved new standard on Automatic Exchange of Information, as to protect the interest of the states and the tax systems due to offshore tax evasion, which had become problems to many countries. This standard was approved by G20 Finance Ministers and Central Bank governors back in 2013. Going forward to 2014, G20 Finance Ministers and the Central Bank governors endorsed the Common Reporting Standard for Automatic Exchange of Information as the new global standard and the global model was drafted with respect to financial information. The CRS is intended as setting a minimum standard for the information to be exchanged and tax jurisdictions may choose on how extensive the information to be exchanged.

The CRS was implemented in effect on January 1st 2017 and tax authorities could enter agreement with each other on automatic exchange of financial information and even to enter a ‘Competent Authority’ agreement, which means those states will become Reportable Jurisdictions and that FIs in those states will have to report the financial account information of accounts held by persons that are tax residents of the Reportable Jurisdictions to each other.

EditorBanking & FinanceAEOI,FATF,financial,Haven,OECD,TaxOECD had approved new standard on Automatic Exchange of Information, as to protect the interest of the states and the tax systems due to offshore tax evasion, which had become problems to many countries. This standard was approved by G20 Finance Ministers and Central Bank governors back in 2013....