Common Reporting Standard (“CRS”)

The Common Reporting Standard (“CRS”) became effective in over 50 participating jurisdictions in 2016. This has increased to 96+ jurisdictions over subsequent years. Implementing the requirements of CRS as they develop is a large and time-consuming task for all organisations in participating jurisdictions.

CRS is based on agreements between participating, or partner, jurisdictions. It requires institutions in one jurisdiction to identify and report financial data relating to the accounts they hold for tax residents of a partner jurisdiction to their domestic tax authorities. These authorities will in turn exchange that information with the tax authorities of the partner jurisdiction. Reporting under the CRS began in 2017, for the 2016 reporting year.

With over 90 jurisdictions taking part, the goal is to identify persons who may be evading tax in their country of residence by investing and earning income through financial institutions (FIs) in another jurisdiction. FIs are required to identify and report on all specified persons of each participating jurisdiction. Along with US FATCA and UK FATCA, these regimes are collectively known as Automatic Exchange of Information (AEOI).

Westwinds reports under CRS as a condition of its licence from the Isle of Man Financial Services Authority. Further information is available from the Isle of Man Government’s FATCA and CRS page.