Weaknesses of the Common Reporting Standard

Weaknesses of the Common Reporting Standards

In July 2014 the OECD published the commentary to the Common Reporting Standards.
Latest Directive Proposal:
This website will focus on the 22 loopholes, omissions, Lucunae, weaknesses and gaps of the OECD's Common Reporting Standard.

Gaps, omissions
Loopholes, weaknesses
bullet Tax haven can reject agreement with member if subjective concerns regarding confidentiality of data.

bullet Artificial tax residence

bullet Active entities

bullet $250,000 pre-existing entities

bullet FATCA not reciprocal

bullet Non passive income / hard assets

bullet NFE < 2 years / liquidating NFEs

bullet Under construction

Locations of visitors to this page
bullet3 Non cash value insurance (irrevocable life).

bullet3 Self certification on residence done once.

bullet3 Non particpating FI only a NFE if it's an investment entity

bullet3 Weak definition of settlor

bullet3 Personal pensions

bullet3 Entities individually managed, non binding investment mngt - not an investment entity (is a weaker NFE)

bullet3 High threshold of controlling shares (25%) --> weaker beneficiary identification according to management

bullet3 Under contruction