5. Common Reporting Standard

Common Reporting Standard (CRS) is a global reporting standard developed by Organization of Economic Co-operation and Development (OECD) for the automatic exchange of financial information among its member countries. The purpose of CRS is to allow tax authorities to get details on financial assets held abroad by the residents of a member country.

CRS is organized based on tax jurisdictions. Reporting financial institutions review their financial accounts to identify reportable accounts by applying due diligence rules and then report the relevant information. A Reportable Jurisdiction is a jurisdiction with which an agreement is in place for automatic exchange of information under the reporting standard.

This chapter contains the following sections:

5.1 CRS Jurisdiction Maintenance

This section contains the following topics:

5.1.1 Maintaining CRS Jurisdiction

You can define jurisdictions and their participating countries using CRS Jurisdiction Maintenance screen. You can invoke this screen by typing ‘STDJSMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can specify the following details in this screen:

Jurisdiction Code

Specify the jurisdiction code.

Jurisdiction Description

Give a brief description for the jurisdiction code.

CRS Participant

Check this box to indicate that the jurisdiction is a CRS participant.

Participating Countries

Country Code

Specify the country code that is part of the jurisdiction. Alternatively, you can select the country code from the option list. The list displays all valid options.

Country Description

The system displays the country code description.

5.1.2 Viewing CRS Jurisdiction Details

You can view the CRS Jurisdiction details maintained in the ‘CRS Jurisdiction Maintenance’ screen using the ‘CRS Jurisdiction Maintenance Summary’ screen. You can invoke this screen by typing ‘STSJSMNT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

In the above screen, you can base your queries on any or all of the following parameters and fetch records:

Select any or all of the above parameters for a query and click ‘Search’ button. The records meeting the selected criteria are displayed.

5.2 CRS Bank Parameters

This section contains the following topics:

5.2.1 Maintaining CRS Bank Parameters

All CRS common parameters for a jurisdiction can be maintained in CRS Bank Parameters screen. This is a jurisdiction wise maintenance. If the bank belongs to one Jurisdiction, then maintenance is done for that jurisdiction. If a bank has branches that belongs to more than one jurisdiction then you should maintain CRS Bank Parameter multiple times depending on the number of jurisdictions of a bank.

You can invoke this screen by typing ‘STDCRSPM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can specify the following in this screen:

Bank Code

The system displays the bank code.

Home Jurisdiction

Specify the home jurisdiction. Alternatively, you can select the home jurisdiction from the option list. The list displays all valid values.

Home Jurisdiction Description

The system displays the home jurisdiction description.

CRS Participant

Check this box to indicate that the bank is a CRS participant.

Reportable Confirmation Required

Check this box to indicate that confirmation is required to change the status to reportable.

Responsible Officer Details

Employer Identification Number

Specify the employer identification number of the bank.

Responsible Officer Name

Specify the responsible bank officer’s name.

Responsible Officer Telephone

Specify the responsible officer’s telephone number.

Responsible Officer Email ID

Specify responsible officer’s e-mail ID.

5.2.1.1 CRS Customer Type Parameters

CRS Customer Type

Select the CRS customer type for which the maintenance is done from the drop-down list. The list displays the following options:

Existing Customer

Check this box to indicate that the customer is an existing customer.

Threshold Details

Threshold is maintained for CRS customer type. During customer due diligence, if customer's balance is less than or equal to the threshold amount, the customer is considered to be in Low-Value Exempt and is not reported in the CRS.

Threshold Currency

Specify the currency in which threshold amount is defined. Alternatively you can select the threshold currency from the option list. The list displays all valid options.

Threshold Amount

Specify the threshold amount.

Documents Required

You can maintain the list of mandatory documents required under OECD-CRS:

Category

Specify the category of the document. Alternatively, you can select the document category from the option list. The list displays all valid options.

Type

Specify the type of the document.

Verification Limit in Days

Specify the number of days before which the document should be submitted once requested.

5.2.1.2 Excluded Account Classes

Account Class

Specify the account class which has to be excluded for CRS income calculation. Alternatively, you can select the account class from the option list. The list displays all valid account classes.

Account Class Description

The system displays account class description.

5.2.2 Viewing CRS Bank Parameters

You can view the CRS Bank Parameters maintained in the ‘CRS Bank Parameter’ screen using the ‘CRS Bank Parameters Summary’ screen. You can invoke this screen by typing ‘STSCRSPM’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

In the above screen, you can base your queries on any or all of the following parameters and fetch records:

Select any or all of the above parameters for a query and click ‘Search’ button. The records meeting the selected criteria are displayed.

5.3 CRS Customer Status

This section contains the following topics:

5.3.1 Tracking CRS Customer Status

You can track the CRS status of customers, whose due diligence is already done by the system, along with the customer’s reportable jurisdiction in the ‘CRS Customer Status’ screen. If due diligence of a customer is done more than once because of any modification on customer, it will list the reportable jurisdictions by reportable date.

You can invoke this screen by typing ‘STDCRSST’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. The reportable jurisdictions displayed cannot be added or removed manually.

You can specify the following in this screen:

Customer No

Specify the customer number.

CRS Customer Type

The system displays the CRS customer type. CRS customer type can be Individual, Financial Entity, Active Non-Financial Entity, and Passive Non-Financial Entity.

CRS Status

Specify the CRS status. Alternatively, you can select the CRS status from the option list. The list displays all valid statuses available. The list of valid statuses are:

Reportable Jurisdictions

Jurisdiction

The system displays the jurisdiction code to which the customer is reportable.

Reported By

The system displays the person because of whom the customer has become reportable. The values can be the following:

Reported Reason

The system displays the reason why this customer became reportable for the Jurisdiction. The values can be:

Reported Date

The system displays the date on which due diligence was done on the customer.

TIN EIN

The system displays the tax identification number (TIN).

TIN EIN Country

The system displays the country that issued the TIN.

5.3.2 Viewing CRS Customer Status

You can view the CRS Customer Status maintained in the ‘CRS Customer Status’ screen using the ‘CRS Customer Status Summary’ screen. You can invoke this screen by typing ‘STSCRSST’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

In the above screen, you can base your queries on any or all of the following parameters and fetch records:

Select any or all of the above parameters for a query and click ‘Search’ button. The records meeting the selected criteria are displayed.

5.4 Batch Maintenance

This section contains the following topics:

5.4.1 Pre-existing Customer Batch

You can maintain intra day batch called pre-existing customer batch (STBCOCRS) to run due diligence on already existing customers of a branch.

5.4.1.1 Processing Pre-existing Customer Batch

The pre-existing customer batch performs the following:

5.4.2 New/Modified Customer Batch

You can maintain an end of day batch called New/Modified Customers batch (STBINCRS) to run due diligence on all new and modified customers of the branch.

5.4.2.1 Processing New/Modified Customer Batch

The new/modified customer batch performs the following:

5.4.3 Extract Batch

You can maintain Extract batch (STBEXCRS) to extract the details of all customers who are reportable under CRS. This is an intraday batch and can be run for a Branch. This batch has a two inputs Report From Date and Report To Date. The From and To date can be given from screen Batch EOD Function Inputs (BADEODFE). If From and To Date is not given the reporting period from and to will be fetched from start and end date of Financial Cycle based on the current financial year of the extraction date. Closed customers are not reported as a part of extract batch.

Extraction batch extracts the following data:

5.4.3.1 Processing Extract Batch

Extract batch performs the following: