CRS & Transparency

calculator-385506_1280The UK first introduced the Disclosure of Tax Avoidance Schemes (DOTAS) in 2004. The legislation was one of the first that dealt with transparency and disclosure. Due to the continuous introduction of the Organization for Economic Cooperation and Development (OECD) Common Reporting Standards (CRS), the label, No Safe Havens, first introduced by UK’s HMRC publication in 2013, is more appropriate than ever before.

In five to ten years from now, commercial management as well as wealth management concerning both individuals and companies will be significantly altered. It is advised that both advisers as well as clients start preparing from now to be able to manage the shift as smoothly as possible.

Information Sharing Obligations Outline:

Both the Automatic Exchange of Information and CRS, introduced by the OECD, set the outline concerning sharing information between countries. It is a fact that the authorities of the 96 countries that are dedicated to the exchange of information will soon be informed about unauthorized assets and undeclared income that are derived from these assets.

In accordance to the fourth European Anti-Money Laundering Directive, European countries are required to set up central registers of beneficial ownership. Currently, Norway, the UK and Denmark have already established such registers. As time goes by, and the concept of exchanging information becomes more and more accepted, the central registers of beneficial ownership will also become the new norm.

Information Availability Problems:

International governments have discussed wealth management and tax avoidance extensively. It is anticipated that within the next two years, information on individuals will be accessible easily by tax authorities.