The OECD has published the results of its analysis of residence and citizenship by investment schemes, often referred to as golden passports or visas, identifying those schemes that may be used to circumvent the CRS.
Identity cards, residence permits and other documentation obtained through such schemes, can potentially be abused to misrepresent individuals’ tax residence.
Potentially high-risk schemes are those that give access to a low personal tax rate on income from foreign financial assets, without requiring individuals to spend a significant amount of time in the jurisdiction offering the scheme. Such schemes are currently operated by Antigua and Barbuda, The Bahamas, Bahrain, Barbados, Colombia, Cyprus, Dominica, Grenada, Malaysia, Malta, Mauritius, Monaco, Montserrat, Panama, Qatar, Saint Kitts & Nevis, Saint Lucia, Seychelles, Turks and Caicos Islands, United Arab Emirates and Vanuatu.
The OECD has published practical guidance to help financial institutions identify and prevent cases of CRS avoidance through the use of such schemes. This guidance recommends further questions financial institutions may raise with account holders, where there are doubts regarding tax residence.
The OECD consulted during February and March 2018 to gather information on the use of these schemes. See https://bit.ly/2yHyY7Z.
The Greens/European Free Alliance group in the EU Parliament has published a report, entitled ‘Reporting taxation: analysing loopholes in the EU’s automatic exchange of information and how to close them’, which calls on the European Commission to enhance due diligence for golden visas.
The report identifies potential shortcomings in the CRS, such as the lack of any sanctions for financial centres like the United States that fail to exchange all relevant information with EU member states.
The OECD has published the results of its analysis of residence and citizenship by investment schemes, often referred to as golden passports or visas, identifying those schemes that may be used to circumvent the CRS.
Identity cards, residence permits and other documentation obtained through such schemes, can potentially be abused to misrepresent individuals’ tax residence.
Potentially high-risk schemes are those that give access to a low personal tax rate on income from foreign financial assets, without requiring individuals to spend a significant amount of time in the jurisdiction offering the scheme. Such schemes are currently operated by Antigua and Barbuda, The Bahamas, Bahrain, Barbados, Colombia, Cyprus, Dominica, Grenada, Malaysia, Malta, Mauritius, Monaco, Montserrat, Panama, Qatar, Saint Kitts & Nevis, Saint Lucia, Seychelles, Turks and Caicos Islands, United Arab Emirates and Vanuatu.
The OECD has published practical guidance to help financial institutions identify and prevent cases of CRS avoidance through the use of such schemes. This guidance recommends further questions financial institutions may raise with account holders, where there are doubts regarding tax residence.
The OECD consulted during February and March 2018 to gather information on the use of these schemes. See https://bit.ly/2yHyY7Z.
The Greens/European Free Alliance group in the EU Parliament has published a report, entitled ‘Reporting taxation: analysing loopholes in the EU’s automatic exchange of information and how to close them’, which calls on the European Commission to enhance due diligence for golden visas.
The report identifies potential shortcomings in the CRS, such as the lack of any sanctions for financial centres like the United States that fail to exchange all relevant information with EU member states.
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