This article was last reviewed on 27-09-2017.
On 1 January 2016 the automatic exchange of financial account information in tax matters came into effect. Ignorance is of course no excuse and ignoring the matter can result in trouble.
It is a Global Common Reporting and Due Diligence Standard (CRS) which is developed by the Organisation for Economic Co-operation and Development (OECD) in cooperation with G20 and the European Union. As per latest available update 89 countries have committed to implement AEoI either by September 2017 or September 2018. In terms of AEoI's implementation, the CRS will need to be translated into domestic law, whereas the Competent Authority Agreements can be executed within existing legal frameworks such as Article 6 of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters or the equivalent of Article 26 in bilateral Double Tax Treaties.
In plain English, governments participating in this will obtain detailed account information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis. The purpose behind this initiative is the protection of the integrity of the tax systems of each participating country and suppress the tax evasion through offshore jurisdictions.
All financial institutions (banks, custodians, treasury, brokers, certain collective investment vehicles and specified insurance companies) will report the following information:
|Antigua and Barbuda||Sept 2018|
|The Bahamas||Sept 2018|
|British Virgin Islands||Sept 2017|
|Brunei Darussalam||Sept 2018|
|Cayman Islands||Sept 2017|
|Cook Islands||Sept 2018|
|Costa Rica||Sept 2018|
|Czech Republic||Sept 2017|
|Faroe Islands||Sept 2017|
|Hong Kong (China)||Sept 2018|
|Isle of Man||Sept 2017|
|Macao (China)||Sept 2018|
|Marshall Islands||Sept 2018|
|New Zealand||Sept 2018|
|Saint Kitts and Nevis||Sept 2018|
|Saint Lucia||Sept 2018|
|Sint Maarten||Sept 2018|
|Saint Vincent and the Grenadines||Sept 2018|
|San Marino||Sept 2017|
|Saudi Arabia||Sept 2018|
|Slovak Republic||Sept 2017|
|South Africa||Sept 2017|
|Trinidad and Tobago||Sept 2018|
|Turks and Caicos Islands||Sept 2017|
|United Arab Emirates||Sept 2018|
|United Kingdom||Sept 2017|
23.12.2015: Greenland signs the Multilateral Competent Authority Agreement.
17.12.2015: China signs the Multilateral Competent Authority Agreement.
15.12.2015: Monaco signs the Multilateral Competent Authority Agreement.
You can get in touch with our specialists at B2B Lateral Thinking Solutions to discuss your current arrangements and device a plan!Back to Articles Back to B2B Lateral Thinking Solutions
The information provided in this article is for general information purposes only. The information is not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified professional on any specific matter.
B2B Lateral Thinking Solutions
B2B Lateral Thinking Solutions is a boutique consultancy operating from Cyprus and servicing private, corporate and institutional clients. Our team of dedicated, passionate and highly qualified professionals assists numerous clients across the EU, Russia and CIS countries. Lateral thinking is not only a name. Lateral thinking defines how we approach problems and our work ethic. We partner up with our clients to uncover solutions through indirect avenues and by employing creative thinking.
Cyprus Self-Managed Alternative Investment Funds with Limited Number of Persons (AIFLNP) - Compliance Calendar Have you ever been in a situation where although you have the competency to perform a task you are unsure what the totality of the task might be? This situation can arise when numerous regulatory requirements are imposed on an organisation and further exacerbated by the almost exponential increase in the velocity of change of these requirements.Read more