El Standard Common Equipment Communication o Standard Common Equipment of Report (ECR) known by its acronym in English (CRS) of Common Reporting Standard It is the approved model of automatic exchange of insights financial cooperation between countries for tax purposes, which is based on the Multilateral Agreement on Authorities Competent on Automatic Exchange of Information Financial Accounts approved in October 2014.
The Standard Common Equipment Reporting (CRS) consists of the exchange of certain insights financial cooperation between countries, originated by the Multilateral Agreement for the Exchange of Information of the OECD. Learn what it is and what it is insights It is the one that can be shared between the different tax administrations of the world.
The Standard Common Equipment Reporting is the global reporting standard for Automatic Exchange of Information Information on Financial Accounts prepared by the OECD – Organisation for Cooperation and Economic Development. The CRS, published in July 2014, contains a series of rules for financial institutions (insurance companies) to identify persons subject to reporting and inform the authorities respective jurisdictions. Subsequently, the insights relevant information will be automatically exchanged between participating jurisdictions on an annual basis.
Basis
In an environment where the globalization of financial services makes it easy to open bank accounts in financial institutions in other countries via the Internet, but where borders between countries continue to operate as barriers to insights taxation for authorities public. The automatic exchange mechanism of insights between countries allows the tax authorities of the member countries to have crafts periodic insights taxation of investments or positions of its taxpayers in financial institutions located in the extranjero. The work It aims to replace the communication mechanisms of insights intergovernmental agreements, which were in force until then and which have clearly proven ineffective, which were based on the request requested by the States that is included in the exchange clauses of insights of the agreements to avoid double taxation signed by countries.
The standard states:
- La insights which will be exchanged on financial accounts.
- Financial institutions that have legal obligation to report the insights.
- The different types of accounts and taxpayers affected.
- Common due diligence procedures diligence.
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