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OECD publishes final common reporting standard text

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The OECD has published the final text of its common reporting standard (CRS) for automatic exchange of information between tax authorities worldwide. The commentary to the CRS is still under discussion at the OECD.

The new standard would require jurisdictions to obtain information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis. However, the CRS would allow the exemption of certain types of low-risk financial institutions and/or accounts from reporting requirements. The UK therefore intends to legislate to exempt UK registered pension schemes from the new reporting requirements.

The OECD will formally present the standard for the endorsement of G20 finance ministers during a 22/23 February meeting in Sydney, Australia. OECD secretary-general Angel Gurría said: ‘This is a real game changer. Globalisation of the world’s financial system has made it increasingly simple for people to make, hold and manage investments outside their country of residence. This new standard on automatic exchange of information will ramp up international tax co-operation, putting governments back on a more even footing as they seek to protect the integrity of their tax systems and fight tax evasion.’