Analysis of Common Reporting Standard Loopholes

* Update 14th August- Trusts look through FI account holders to controlling Persons

PDF document May 2017 report to OECD and EU Parliament on the 26 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 accounts, invariably held by US trusts due to IRS collecting info on single-member foreign owned LLCs - However be aware of the 40% US estate tax trap
  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
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