Transparency and Worldwide Reporting
The Common Reporting Standard (CRS) is a global initiative that allows participating jurisdictions to automatically exchange taxpayer information among countries that have adopted the CRS. Under the CRS, financial institutions report cross-border private client investments to tax authorities around the world on an unprecedented scale. As a result, wealth holding structures will become transparent to tax authorities as never before.
Nearly 60 jurisdictions began to exchange data in September 2017: many others are beginning participation throughout 2018.
Click here to view our interactive map to get a wider picture of the impact of the Common Reporting Standard.
Read our brochure on Tax Transparency or for more information contact your local BDO member firm.
Global Reporting and the challenges of supporting multi-jurisdictional clients
In Autumn 2017, 15 private client lawyers, international private bankers, wealth professionals and members of BDO’s international private client tax teams from BDO US, BDO UK and BDO Singapore, were in New York for a roundtable debate with the Society of Trust and Estate Practitioners (STEP). The subject was the challenges for international advisors presented by the move towards worldwide transparency and reporting, and of working with clients in multiple jurisdictions.
The attendees brought varying perspectives on the challenges facing professionals advising private clients on a global scale:
- The challenges brought by the increasing levels of wealth transfer to future generations, in a time of global mobility – and the increasing numbers of Americans now living abroad.
- The emphasis put upon transparency and reporting standards from the worldwide community and challenges of advising multijurisdictional clients, many of whom may not understand the rules – including those US citizens living outside of the US
- How practitioners find the line between effectively advising clients and ‘policing’ non compliance
- Distinguishing the structuring of tax affairs globally to suit client circumstances, while ensuring compliance, from non-compliant tax issues
- The key effects of the Common Reporting Standard (CRS) on philanthropy in cross border families and the increasing demand for multijurisdictional charitable structures
- The perception by some that the US is a key destination for their wealth, yet the sheer complexity of US reporting rules for taxable assets
- Finding bespoke solutions for international private client families moving across borders – keeping this simple to be able to adapt and evolve over time and across generations
- Balancing privacy and the need for information, potentially, to be in the public interest
The key takeaways from the event were the growing need for collaboration and communication between international professional advisers, and how we as a professional network can strengthen these relationships to achieve success for clients.
Read the full article, which first appeared in the STEP Journal December/January 2017/2018, Vol 25, Issue 10, and touched on some of these fundamental challenges.