Due to the wide range of people affected, CRS is one of the hottest topics in the world in 2018. Residents of 100 CRS member countries are anxious about how they are going to be affected on taxation if they have financial assets in other countries.
The focus of CRS is on tax evasion. The governments want to collect the taxes illegally hidden in those tax paradises. Although the United States is not a member of the CRS, the United States took the lead in 2014, with FATCA, and CRS is basically an expanded version of FATCA.
The game between the government and the investors is Tom and Jerry. As the global economy becomes more integrated, this game will continue and the content of the game will escalate. The party more familiar with the rules will win the battle!
CRS-affected groups:
Individuals and companies with overseas financial products in all member countries
Entities participated information exchange:
All member countries’ banks, trusts, brokers, insurance companies and all investment entities that provide financial products.
Asset information to be exchanged: deposit accounts, escrow accounts, funds, stocks, annuity contracts, insurance contracts with cash values, etc.
Personal information to be exchanged: account number, account balance, name, date of birth, age, gender, residence address.
CRS exchange process:
1. financial institutions report non– residents information to national tax authorities.
2. national tax authorities will exchange the information with other CRS members.
the old-fashioned approach to avoid tax is no longer feasible. Therefore, a tax planning becomes more important than ever not only for wealthy investors, also for every one with oversea financial assets.
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