OECD CRS Updates

The OECD has released a second edition of its CRS implementation handbook. The new edition provides additional and more up to date guidance on certain areas related to the effective implementation of CRS, covering topics such as legal framework for implementation of AEOI, data protection, IT and administrative infrastructures, as well as compliance matters. The trust section of the handbook has been updated to provide more clarity in relation to the identification of controlling persons. The OECD CRS Implementation Handbook (2018) can be downloaded here or accessed on the website of the OECD.

In addition, the OECD has addressed the misuse of “residence by investment” and “citizenship by investment” schemes to circumvent the CRS. These are schemes that allow foreign individuals to obtain citizenship or residence rights in exchange for local investments or against a flat fee. This is part of a broader push of the OECD to close loopholes and ensure that all taxpayers maintaining financial assets abroad are effectively reported under CRS. The discussions in this regard are still at an early stage. The consultation document can be downloaded here or accessed on the website of the OECD.