ΜΑΡ-CRS Reporting Service
The Common Reporting Standard (CRS) is a standard that was introduced and develop by the Organisation for Economic Co-operation and Development (OECD) with G20 countries and in close cooperation with the EU for the Automatic Exchange of Information (AEOI) that will have a significant increase in the customer due diligence and reporting. Moreover, the CRS will come into effect in stages, beginning 1st January 2016.
- The scope of financial information reported: A comprehensive reporting regime covers different types of investment income including interest, dividends and similar types of income, and also address situations where a taxpayer seeks to hide capital that itself represents income or assets on which tax has been evaded (e.g. by requiring information on account balances).
- The scope of accountholders subject to reporting: A comprehensive reporting regime requires reporting not only with respect to individuals, but should also limit the opportunities for taxpayers to circumvent reporting by using interposed legal entities or arrangements. This means requiring financial institutions to look through shell companies, trusts or similar arrangements, including taxable entities to cover situations where a taxpayer seeks to hide the principal but is willing to pay tax on the income.
- The scope of financial institutions required to report: A comprehensive reporting regime covers not only banks but also other financial institutions such as brokers, certain collective investment vehicles and certain insurance companies.
- The CRS, which contains the reporting and due diligence rules.
- The Model Competent Authority Agreement (Model CAA), which contains the detailed rules on the exchange of information.
- The OECD Commentaries, which provides additional guidance on local implementation of the CAA and CRS.
It is noted that so far, 97 countries have signalled their intention to adopt the legislation, with 58 of these formally committing to be early adopters.
The ΜΑΡ-CRS Reporting Service shall provide the ability to extract, reconcile and submit the relevant information required under the CRS reporting and due diligence rules.