Common Reporting Standard (CRS): what it means for SKAGEN’s clients
The Common Reporting Standard (CRS) is an international framework for the automatic exchange of tax information between countries around the world.
It was developed by the Organisation for Economic Co-Operation and Development (OECD) in order to fight tax evasion and improve tax compliance. It follows the introduction of FATCA by the US.
CRS provides standard procedures to be followed by financial institutions globally to identify certain accounts that are subject to reporting requirements. The financial institutions will then report clients’ account details to the local tax authority, which will then exchange the information with the relevant jurisdictions.
There are more than 90 countries that have currently signed up to CRS, including Norway, Sweden, Denmark, the UK and the Netherlands.
Norway has committed to implementing CRS as an ‘early adopter’ with the new regime coming into force on 1 January 2016 and the first batch of reporting will be done in 2017.
How does this affect SKAGEN’s clients?
As of 1 January 2016, SKAGEN will implement new account opening procedures. All new SKAGEN clients – both retail and professional – will have to fill in a self declaration form which will contain all relevant details for the reporting, including tax residence information.
For existing clients SKAGEN will be required to perform certain due diligence procedures to determine if the accounts are reportable accounts. SKAGEN may contact clients for additional information if relevant.
We will update our web pages with further details about CRS in due course after implementation.