9 Common Reporting Standard
This topic explains about Common Reporting Standard.
The Common Reporting Standard (CRS), formally referred to as the Standard for Automatic Exchange of Financial Account Information, is an information standard for the Automatic Exchange Of Information (AEOI), developed in the context of the Organization for Economic Co-operation and Development (OECD).
The legal basis for exchange of data is the Convention on Mutual Administrative Assistance in Tax Matters and the idea is based on the USA Foreign Account Tax Compliance Act (FATCA) implementation agreements.
On May 6, 2014, Forty-seven countries tentatively agreed on a Common Reporting Standard, an agreement to share information on resident’s assets and incomes automatically in conformation with the standard. Until now, the parties to most treaties which are in place for sharing information have shared information upon request, which has not proved effective in preventing tax evasion.
The new system will automatically and systematically transfer all the relevant information. This agreement is informally referred to as GATCA (the Global version of FATCA), but ‘CRS is not just an extension of FATCA’.
Endorsing countries included all OECD countries, as well as Argentina, Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabia, Singapore, and South Africa. In September 2014, the G-20, at its meeting in Cairns, Australia, issued the G20 Common Reporting Standard Implementation Plan as part of its official resources.
On 29 October 2014, 51 jurisdictions signed an agreement to automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters. This agreement specifies the details of what information will be exchanged and when, as set out in the Standard. China, Hong Kong and more than 80 countries have agreed to become signatories.
- PARAM Maintenance
This topic explains on PARAM Maintenance. - Process Tax Compliance Setup Detail
This topic provides the systematic instructions to capture tax compliance type, limit maintenance, and limit currency details. - Tax Compliance Setup Summary
This topic provides the systematic instructions to perform the basic operations on the selected records. - Process Tax Compliance Source Country Maintenance
This topic provides the systematic instructions to maintain source country and the respective reportable countries for a rule type. - Tax Compliance Source Country Maintenance Summary
This topic provides the systematic instructions to perform the basic operations on the selected records. - Process Tax Compliance Document Maintenance Detail
This topic provides the systematic instructions to maintain the list of tax compliance Document details. - Tax Compliance Document Maintenance Summary
This topic provides the systematic instructions to perform the basic operations on the selected records. - Process Tax Compliance Classification Maintenance Detail
This topic provides the systematic instructions to maintain tax compliance classification. - Tax Compliance Classification Maintenance Summary
This topic provides the systematic instructions to perform the basic operations on the selected records. - Process Third Party Entity Maintenance Detail
This topic provides the systematic instructions to maintain third party entity. - Third Party Entity Maintenance Summary
This topic provides the systematic instructions to perform the basic operations on the selected records. - Process Due Diligence Detail
This topic provides the systematic instructions to maintain due diligence details.