CRS timeline and library
What is Common Reporting Standard?
On 21 July 2014, the Organisation for Economic Co-operation and Development (OECD) published the Standard for Automatic Exchange of Information in Tax Matters (the Standard).
The Standard consists of the Model Competent Authority Agreement (CAA), intended as template for intergovernmental agreements, and the Common Reporting Standard (CRS) that contains the reporting and due diligence standard that underpins the automatic exchange of information. There are also extensive commentaries and guidance on technical solutions for information exchange as well as a number of appendices.
Automatic exchange of information involves the systematic and annual transmission of “bulk” taxpayer information by the source jurisdiction to the residence jurisdiction of the taxpayer. It can provide timely information on non-compliance where tax has been evaded, particularly where tax administrations have had no previous indications of non-compliance.
More than 90 jurisdictions have already committed to the swift implementation of CRS. Of these, over 50 are committed to first exchange in 2017. In these “early adopter” jurisdictions, new account opening procedures will need to be in place from 1 January 2016.
The publication of the CAA and the CRS is a significant structural step in governments’ efforts to improve cross-border tax compliance. This follows a raft of tax compliance legislation such as the US Foreign Account Tax Compliance Act (FATCA) and active campaigns of voluntary disclosures and legal procedures.