Analysis of Common Reporting Standard Loopholes

* * Update 9 March 2018 * * How OECD will address residence by investment schemes

* * Update 10 March 2018 * * OECD releases MDR

* * Update 13 March 2018 * * EU Council approves OECD CRS in amended directive

* * Update 29 March 2018 * * Determine tax residences based on Centre of vital Interest

* * Update 6 April 2018 * * 2nd OECD CRS Implementation Handbook

* * Update 19 April 2018 * * OECD publishes feedback on abuse of residence consultation

Changes in 2nd edition of Handbook provide additional up-to-date guidance on areas related to the effective implementation. Includes revisions pertinent to the legal framework for implementation, data protection, IT and administrative infrastructures as well as compliance measures. Clarity provided in trust section relating to identification of Controlling Persons.
The Common Reporting Standard

  1. The PDF document 2nd CRS implementation Handbook
  2. OECD PDF document Common Reporting Standard and Commentary
  3. The OECD maintained list jurisdiction-specific overview of the steps taken and choices made by jurisdictions in the context of implementing the Standard.
  4. The OECD list of PDF document CRS-related Frequently Asked Questions
  5. November 2017 - OECD list of 105 jurisdictions PDF document CRS committing to CRS by 2020. Also the 41 developing countries having not yet set the date for first automatic exchange.
  6. January 2018 - List of 98 PDF document signatories to the Competent Authority Agreement on Automatic Exchange of Financial Account Information.
  7. December 2017 - OECD PDF document FAQ on CRS.
  8. April 2018 - 150 Members of the OECD Global Transparency Forum.
Mandatory Disclosure Rules addressing CRS avoidance arrangements

Pascal Saint Amans quoted in news that the model disclosure rules will be submitted to the G7 presidency and are part of a wider strategy of the OECD to monitor and act upon tendencies in the market that try to avoid CRS reporting and hide assets offshore.
Abuse of residence by investment schemes

Newsworthy Updates

How FIs must determine jurisdictions with tax claim of individuals using residence by investment certificates
How to determine all jurisdictions with tax claim on individuals using a RbI / CbI certificate

The most egregious CRS loopholes
UAE Investment Residency Sham.

Hong Kong ORSO sham.

Singapore nil report on settlors of irrevocable trusts.

Manage assets in non participating jurisdiction.

Asian banks categorising trading companies as Active NFE.