STEP BERMUDA Impact of CRS on Private Trustees and

Transcript:STEP BERMUDA Impact of CRS on Private Trustees and:
STEP BERMUDA Impact of CRS on Private Trustees and Administered Entities A practitioner’s view Prepared by: David Veness Date: 2 December 2015 PUBLIC Tax environment PUBLIC Statement of Early Adopters Group – 19 March 2014 “Tax evasion is a global problem and requires a global solution. We therefore welcome the new standard in automatic exchange of information between tax authorities developed by the OECD (the Common Reporting Standard). This will provide a step change in our ability to clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes. The initiative was first launched by France, Germany, Italy, Spain and the UK in April 2013. In doing so we recognised that only those financial centres which adopt the highest standards in tax transparency and work in close cooperation to tackle cross-border tax evasion will prosper in the future. Now that the Common Reporting Standard is agreed, we intend to implement it among the early adopters group to an ambitious but realistic timetable: … The first exchange of information in relation to new accounts and pre-existing individual high value accounts will take place by the end of September 2017.” PUBLIC Key Terminology AEOI – Automatic Exchange of Information FATCA – Foreign Account Tax Compliance Act IGA – Inter Governmental Agreement CDOT - Crown Dependencies and Overseas Territories CRS – Common Reporting Standard PUBLIC 1. CRS: Introduction PUBLIC Welcome to the ‘Common Reporting Standard’ presentation for STEP Bermuda This presentation will cover: The Common Reporting Standard (CRS) OECD Handbook approach and Wave 1, 2 and 3 countries What it means for Private Trustees and trust principals The Classification process for administered entities Identification of Controlling Persons Due Diligence and the Self-Certification process What to do if there is a Change in Circumstances Relationship Manager attestations Reporting by the trustee Reporting by upstream custodians Some examples of classifications PUBLIC The OECD's Common Reporting Standard for the Automatic Exchange of Financial Information (CRS) - About the CRS Comes into effect in stages from 1 January 2016 CRS similar to EU directives / conventions and FATCA, albeit broader and more global Approx. 100 countries will adopt legislation Approx. 60 early adopters Bermuda 2016 Reporting 2017 PUBLIC The OECD's Common Reporting Standard for the Automatic Exchange of Financial Information (CRS) Standard consists of the following elements: FORMS Procedure Manual CRS Standard Commentaries Bermuda law Banks / Trustees CAA