OECD Standard for Automatic Exchange of Financial Account Information (Second Edition)

Document Overview

Summary and analysis of the official DITC document: OECD Standard for Automatic Exchange of Financial Account Information (Second Edition).

Key Concepts Covered

• Common Reporting Standard (CRS)
• FATCA
• Self-Certification
• Reporting Financial Institution
• Reportable Jurisdiction
• Penalties and Enforcement

Deadlines & Timelines Mentioned

• In February 2014, the G20 Finance Ministers and Central Bank Governors endorsed the Common Reporting Standard for automatic exchange of tax information contained in Part II of this document.
• By May 2014 over 60 jurisdictions had committed to swiftly implement the Common Reporting Standard, including translating it into domestic law.
• The Convention was amended to respond to the call of the G20 at its April 2009 London Summit to align it to the international standard on exchange and to open it to all countries, in particular to ensure that developing countries could benefit from the new more transparent environment.
• The term “Lower Value Account” means a Preexisting Individual Account with an aggregate balance or value as of 31 December [x xxx] that does not exceed USD 1 0 00 0 00.
• The term “High Value Account” means a Preexisting Individual Account with an aggregate balance or value that exceeds USD 1 000 000 as of 31 December [xxxx] or 31 December of any subsequent year.
• Jurisdiction B p rovides notice on 1 November 2015 that it has legislation in effect to provide reporting with respect to 2017.
• The notified Competent Authority should provide a response or an update as soon as possible and no later than 90 calendar days of having received the notice from the other Competent Authority.
• Because the account ceased to be a Reportable Account on 24 March 02, information with respect to that account is not required to be reported in calendar year 03 nor afterwards, unless the account once again becomes a Reportable Account in calendar year 03 or any subsequent calendar year.
• • Ex ample 4 ( Account that ceases to be a Reportable Account and is closed): The facts are the same as in Example 2, except that on 4 July 02 the Account Holder closes the account.
• Thus, if the reporting period ends with the calendar year, then the relevant balance or value must be determined as of 31 December of the calendar year.
• FATF/OECD (2013), International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation, The FATF Recommendations February 2012, FATF/OECD, Paris, available on www.fatf-gafi.org/media/fatf/ documents/recommendations/pdfs/FATF_Recommendations.pdf .
• According to subparagraph C (6), if a Preexisting Individual Account is not a High Value Account as of 31 December [xxxx] (i.e.
• The term “immediate annuity” means an Annuity Contract that (i) is p urchased with a single premium or annuity consideration; and (ii) no later than one year from the purchase date of the contract commences to pay annually or more frequently substantially equal periodic payments.
• The following examples illustrate the application of this wider approach: • Example 1: J urisdiction A d ecides to implement the Common Reporting Standard effective 1 January 2016, meaning that all accounts opened after that date are considered New Accounts.

Document Snippet

Standard for Automatic Exchange of Financial Account Information in Tax Matters Second Edition Standard for Automatic Exchange of Financial Account Information in Tax Matters Second Edition The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions. This publication contains the following four parts: A model Competent Authority Agreement (CAA) for the automatic exchange of CRS information; the Common Reporting Standard; the Commentaries on the CAA and the CRS; and the CRS XML Schema User Guide. This edition expands the last part on the CRS XML Schema User Guide. It contains additional technical guidance on the handling of corrections and cancellations within the CRS XML Schema, as well as a revised and ex...