Jersey publishes updates to the CRS legislation

On 10 October 2017, the Government of Jersey issued the Taxation (Implementation) (International Tax Compliance) (Common Reporting Standard) (Amendment) (Jersey) Regulations 2017 (“Updated CRS Regulations”) (Link).

The updated CRS Regulations amend Regulation 1 and Regulation 5 of the Taxation (Implementation) (International Tax Compliance) (Common Reporting Standard) (Jersey) Regulations 2015, and insert Regulation 12A.

  • The amended Regulation 1 states that the Jersey Regulations are using the definitions under CRS as their underlying definition.
  • The Government of Jersey decided to reduce the period for which records of the steps taken in accordance with the Regulation must be kept from 6 years to at least 5 years after the end of the period within which the reporting financial institution must report the information required to be reported and amended Regulation 5 accordingly.
  • Under the new Regulation 12 A. the Comptroller shall take the CRS and the related commentaries on the CRS published on the OECD’s website into account when determining whether a person is liable to a penalty or not.

These updated CRS Regulations became effective on 17 October 2017.

Mexico conducts the first exchange of information under CRS

On 19 October 2017, the Mexican Tax Authority (“Servicio de Administración Tributaria or SAT”) announced that it has conducted the first exchange of information under the OECD’s Common Reporting Standard. From the 49 countries which reported in 2017, the SAT received tax information from 38 jurisdictions with this first tranche. From 2018 onwards 53 more countries begin to exchange information automatically (Link-Spanish).

Colombia set up an amendment deadline of the 2016 FATCA and CRS reports

On 9 October 2017, the Colombian Tax Authority (“DIAN”) released tax information which establishes a deadline to amend unreported assets and non-existent liabilities under FATCA and CRS. Foreign Financial Institutions (“FFI”) will have time until 31 December 2017, to report undeclared assets and to exclude non-existent liabilities from their 2016 reports.

A rate of 13% on the equity value of the assets omitted or non-existent liabilities, plus a penalty for the delay, adding to these values​, including the interest on arrears caused at the time of liquidation and payment of the levy, will be added (Link-Spanish).

In Colombia, the reporting deadlines for FATCA and CRS depend on the last digit of each FFIs Tax Identification Number. The last reporting in Colombia was due to the 3rd working day of August (for FATCA) and the 8th working day of August (for CRS).

Singapore releases updated FAQs and the CRS XML Schema User Guide

On 13 October 2017, the Inland Revenue Authority of Singapore (“IRAS”) announced that it has updated the IRAS FAQs on the Common Reporting Standard (“CRS”) with changes made to FAQ C.2 (Link). The recent changes clarify, if Supplementary Retirement Scheme (“SRS”) accounts and SRS investment accounts are subject to CRS due diligence and CRS reporting requirements (Link).

Also on 13 October 2017, the IRAS published the CRS XML Schema User Guide (Link). This User Guide largely follows the Common Reporting Standard User Guide Version 2.0 that is found in Annex 3 of the Common Reporting Standard, with modifications made to provide more details on certain data elements (e.g. Message Reference ID, Document Reference ID). The CRS XML Schema v.1.0 can be accessed on the IRAS website (Link). In addition, the summary of the public consultation period for the User Guide which ran from 12 June to 12 July 2017 is also publicly available (Link).

IRAS also notes that it is in the process of developing an IT system to collect and exchange the CRS information.

IRS revises a correction to the proposed FATCA Coordination Regulations

On 26 October 2017, the Internal Revenue Service (“IRS”) in the United States issued a revision to a correction to the proposed FATCA Coordination Regulations (REG-134247-16) that were published in the Federal Register on Friday, 15 September 2017 (Link). The notice of proposed rulemaking, published on 6 January 2017 (Link), under section 1441 of the Internal Revenue Code of 1986 (Code) relates to withholding of tax on certain U.S. source income paid to foreign persons and requirements for certain claims for refund or credit of income tax made by foreign persons.

This correction, which amends a page number in a reference, is corrected as of 26 October 2017, and it is applicable retroactively as of 6 January 2017 (Link).

Liechtenstein intends to extend its CRS network

The Government of Liechtenstein published its request (“Bericht und Antrag” / BuA) to the Parliament (“Landtag”) to extend its CRS network with an additional 27 jurisdictions (Link-German). The Parliament has to make a decision during the November session (8 – 10 November 2017) and it is expected that the extension for all 27 jurisdictions will be confirmed. The first exchange of information will then take place in 2019 for the tax year starting 1 January 2018.

Switzerland initiates consultation on introduction of AEOI agreements with Hong Kong and Singapore

On 13 October 2017, the Swiss Federal Council initiated consultation on the introduction of the Automatic Exchange of Information (“AEOI”) agreements with Hong Kong and Singapore (Link). Singapore and Switzerland signed the AEOI Agreement for Automatic Exchange of Information (Link) on 17 July 2017. The AEOI Agreement between Hong Kong and Switzerland was signed on 13 October 2017 (Link). The implementation of the AEOI is planned for 1 January 2018, so that the first exchange of information should take place in 2019. The consultation will last until 27 January 2018.