Dear Valued Clients,
Lead by the OECD, governments worldwide are establishing a new system to combat tax evasion and protect the integrity of the tax systems, known as the Common Reporting Standard (CRS). More than 100 jurisdictions have so far declared their commitment to implement CRS including Hong Kong, Singapore, Switzerland and Vanuatu.
Similarly to FATCA which requires reporting foreign bank account details of US persons, the essence of CRS is to share foreign bank account details with the tax authorities of the tax residence country of Reportable Persons or Entities. In Vanuatu, the legislation has already been drafted and preparations are being made to start the exchange by September 2018.
At this stage, you do not have to take any actions. We will be reaching out to those clients affected individually in due course to complete a “Tax Residency self-certification form”.
Please feel free to contact us if you have any additional questions.
You can find out more about CRS on http://www.oecd.org/tax/automatic-exchange/common-reporting-standard/.
Pacific Private Bank Team