CRS: The First Steps Towards Compliance and Guidance Begins

Sovos
August 14, 2015

There has been a recent development in the evolution of global information reporting and the Common Reporting Standard (CRS) reporting requirements. On August 7, 2015, the OECD (Organization for Economic Co-operation and Development) released the first version of a CRS Implementation Handbook, which is meant to provide practical guidance to assist government officials and financial institutions (FI’s) when it comes to the necessary steps for implementing CRS.

This guide encourages FI’s and government officials to:

  • Consistently use the optional provisions available and outlined
  • Identify areas for alignment with FATCA
  • How to address operational and transitional challenges resulting from the staggered implementation of CRS

The CRS will require jurisdictions to obtain information from their financial institutions about accounts based on foreign tax residency and automatically exchange that information with other jurisdictions on an annual basis. Currently, over 90 jurisdictions have committed to implement CRS, with the first exchanges set to begin in 2017 and 2018. However, first each jurisdiction still must adopt necessary legislative procedures and requirements that state how and what data FI’s must submit to comply with their reporting obligations.

Since there is limited time left until the automatic exchange of information (AEOI) under CRS becomes a reality, it is crucial that FI’s update their systems to prepare for this new reporting regime.

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Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As VAT and sales and use tax go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
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