CRS – Common Reporting Standards – Changes

Let’s find out about Automatic Exchange of Information and what it means to us.

Overview

Automatic Exchange of Information agreements are made between the majority of countries. These agreements allow the exchange of information between tax authorities of different countries about financial accounts and investments to help stop tax evasion.

Financial institutions, for example, banks, building societies, insurance companies, investment companies, will provide information on non- residents with financial accounts and investments in their home country or almost anywhere else in the world and to both the tax authority of where the person is domiciled and where they are tax resident.

The tax authority will gather information on any non-resident account holder and share it with any relevant countries.

Your home country receive information from other countries about  residents with financial accounts and investments overseas.

Here’s a list of the countries that are participating initially; List of Countries for CRS

Initially this only relates to accounts with a value in excess of $250,000

If you are resident and/or work in China please read this article

I will be expanding this article soon.

Full detail from the OCED here; standard-for-automatic-exchange-of-financial-information-in-tax-matters