What will the OECD do in trying to circumvent CRS?

What will the OECD do in trying to circumvent CRS?

In May, the OECD introduced a scheme disclosure system that aims to evade compliance with the CRS standard. The system makes it possible to report on possible ways of avoiding the provision of data as part of the exchange.

The collection and analysis of information about possible schemes is the initial stage that the tax policy center decided to take regarding deviations from automatic exchange. For the smooth collection of data on possible shortcomings, the OECD has established communication with government agencies, financial and civil institutions. Everyone can become a participant in the collection of information. All information will be sent for further discussion to the OECD departments.

The next step involves a thorough study of the methods that make it possible to bypass the automatic exchange system for risk, which may affect the effectiveness of CRS. At this stage, the following topics will be raised:

- search for ready-made solutions for inspections and commitments under the CRS;

- elimination of ways by which you can bypass the information exchange system;

- Compliance with the CRS rules by financial institutions and governments.

The last stage involves the actions themselves. OECD plans to develop actions to address all of the above issues. Action Plan means the following:

- Rules for the correct understanding and implementation of the CRS system;

- development of rules for use by jurisdictions to further prevent evasion from the transfer of information for exchange;

- providing governments with access to data that is necessary for audits and more efficient operation:

- exchange of information between government agencies on the structures and schemes that are used to avoid CRS;

- Work with the Global Forum, which is responsible for the misunderstanding of the CRS system by any jurisdiction.

According to the OECD, these three stages can solve the problem with possible non-observance of the automatic information exchange system. Also, the database of exchange agreements has been updated, which is based on CRS MCAA. At the moment, the number of bilateral agreements exceeds 1,800.

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