OECD issues new mandatory disclosure rules pending G7 approval
The OECD yesterday issued new rules that will require financial services companies to disclose to the tax authorities any client-based schemes that seek to avoid the Common Reporting Standard (CRS).
The new mandatory rules from the global Paris-based regulatory organisation also seek to close a loophole that allowed firms to prevent the identification of beneficial owners of trusts or entities.
Upon the announcement, an OECD spokesman explained: “With the automatic exchange of CRS information becoming a global reality this year, it is the right moment to get hold of those taxpayers and advisors that attempt to undermine the reporting on offshore assets and that try to play the new global tax transparency framework.”
The OECD has pointed out that the new rules do not affect a particular jurisdictions’ CRS legislation. The organisation described the new regulations as “information-gathering tools” issued in a bid to strengthen the CRS. The new model disclosure rules are pending final approval from the G7 before their anticipated implementation next year.