Analysis of Common Reporting Standard Loopholes

Update 12 January 2017

PDF document Final report to OECD and EU Parliament and EU Commission on the 24 loopholes of the Common Reporting Standard / Directive Administrative Cooperation in the field of tax matters (DAC)

The OECD is aware of weaknesses of the CRS and will refine the Standard in making it more effective, in priority order of the following:

  1. FIs shifting clients to USA related entity, e.g. S. Dakota trusts
  2. Use of fake Dubai FTZ residence certificates
  3. Investment Entity with management and beneficiary in same jurisdiction
  4. Non-cash value investment-linked insurance
  5. Exclusion of Insurance prohibited from being sold
  6. CRS investment manager advising on assets maintained in USA
The Common Reporting Standard

  1. OECD PDF document Common Reporting Standard and Commentary
  2. The PDF document CRS implementation Handbook
  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
Important Updates
  • November 2016 - OECD summary meeting in Georgia on Automatic Exchange of info.
  • April 2016 - PDF document OECD report to G20 Finance Ministers stating OECD will close CRS perceived and actual loopholes and ensure committment timelines for 2017 are kept.
  • Switzerland's CAA delays will not be tolerated.
  • September 2016 - OECD extremly disappointed with Bahamas abuse of bilateral option, stern letter to Government to follow. In a conference in Spain Pascal said Bahamas must follow the multilateral Convention route.
  • August 2016 - EU Council proposal as regards access to anti-money-laundering information for identifying beneficial owners.
  • July 2016 - OECD list of 101 jurisdictions PDF document CRS committing to CRS.
  • November 2015 PDF document information brief states the OECD would assess jurisdictions which satisfy the data confidentiality conditions necessary for AEoI. Participating jurisdictions cannot use the excuse of confidentility concerns to delay CAAs.

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