What Is The Common Reporting Standard (CRS)?
- The CRS is an initiative targeted at tax evaders who reside in or are tax residents in Europe, the Caribbean, certain countries in North, Central and South America, Australia and Asia (“Adopting Countries”) but notably, NOT IN THE U.S. It also applies to certain passive entities with controlling persons residing in an Adopting Country.
- CRS provides for an annual automatic exchange of financial information among Adopting Countries.
- Financial institutions located in Adopting Countries must report financial account information of residents or tax residents. Examples are: interest dividends, income from certain insurance products and sales proceeds from financial assets.
When Does The Implementation Of CRS Start?
- For early adopters the start date is January 2016 for account due diligence obligations, with the first set of reports due in 2017.
Which Types Of Financial Institutions Will Be Affected?
- Certain investment trusts
- Financial institutions with a local client base
- Certain retirement funds
- Financial institutions with only low-value accounts
- Sponsored investment vehicles
- Some investment advisors and investment managers
- Depository institutions
- Custodial institutions
- Investment entities
- Specified insurance companies
- Local banks
Do U.S. Financial Institutions Have To Report?
- No. Only financial institutions from countries that have adopted the CRS have the duty to report.
What Are The Advantages Of Jackson Hole Trust Company?
- For non-U.S. persons wishing to form a new trust or migrate an existing trust, engaging Jackson Hole Trust Company as trustee can eliminate the red tape of CRS.