Synpulse Sponsored Content - CRS Target Reporting Model: One Size Does Not Fit All

Cherry Pei


Combating tax evasion – The next big wave in regulatory regimes globally

Recently, two large scale tax amnesty campaigns have been held: one in India in 2016 and another in Indonesia that end-ed in March 2017. During the Indonesian campaign, more than S$8.8 billion was repatriated from Singapore alone. Both of-fered a window for taxpayers to declare previously undeclared wealth and pay a special tax, in return obtaining freedom from prosecution over their unmet tax liability. These offers were at-tractive in particular because of the increase in exchange of tax information between jurisdictions, under regulations such as FATCA and CRS (Common Reporting Standard).
CRS, the OECD version of FATCA (US), or CDOT (UK), is a cross-ju-risdictional regulation that aims to standardize the exchange of client tax information globally. It was first endorsed by the OECD in 2014. As of May 2017, over 60 jurisdictions have al-ready committed to CRS, and have activated more than 1800 bilateral exchange relationships, most of which are based on the Multilateral Competent Authority Agreement (MCAA). The scale of CRS is unprecedented and reporting of tax information is scheduled to start for most Asian jurisdictions in 2017 or 2018. For financial institutions which have not done so, it is impera-tive to design and implement a solid reporting model that can handle the scope and complexity of the regulation.

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