CRS
Common Reporting Standard
OECD standard for automatic exchange of financial information to combat tax evasion globally.
CRS enables participating jurisdictions to automatically exchange financial account information of each other's residents for tax purposes. Financial institutions identify account holders' tax residency and report relevant information to local tax authorities, who then exchange it with account holders' residence countries. CRS covers various account types including deposits, custodial accounts, insurance contracts, and investment entities. The standard includes due diligence procedures for identifying controlling persons of passive entities and managing pre-existing versus new accounts differently. Over 100 jurisdictions have committed to CRS implementation, creating a global network for tax information exchange. CRS builds on FATCA precedents but provides multilateral rather than bilateral reporting arrangements.
Example
Tax residency determination procedures, automatic information exchange between tax authorities