Automatic Exchange of Information
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.
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What is Automatic Exchange of Information (AEoI)?
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.
What will be reported and by whom?
All financial institutions (banks, custodians, treasury, brokers, certain collective investment vehicles and specified insurance companies) will report the following information:
- Investment income (interest, dividends, income from certain insurance contracts);
- Account balances;
- Sales proceeds from financial assets; and
- Other income generated with respect to assets held in the account or payments made with respect to the account.
Reportable accounts and persons
- Individual accounts (name, address, residency, TIN, date & place of birth);
- Corporate accounts (trusts & foundations) (name, address, residency, TIN)
- Individuals that ultimately control the entities, trusts and foundations (passive NFE) (name, address, residency, TIN, date & place of birth);
- Estate of decedents.
Which countries are participating and when?
|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 2017|
|Turks and Caicos Islands||Sept 2017|
|United Arab Emirates||Sept 2018|
|United Kingdom||Sept 2017|