OECD seeks input on: ‘PREVENTING ABUSE OF RESIDENCE BY INVESTMENT SCHEMES TO CIRCUMVENT THE COMMON REPORTING STANDARD (CRS)’

The Organisation for Economic Co-operation and Development (OECD) has issued a consultation document entitled: ‘PREVENTING ABUSE OF RESIDENCE BY INVESTMENT SCHEMES TO CIRCUMVENT THE COMMON REPORTING STANDARD (CRS)’

The OECD is looking into the CBI/RBI industry as part of its CRS loophole strategy and the IMC needs your feedback to formally respond.

The consultation document:
(1) Assesses how these schemes can be exploited in an attempt to circumvent the CRS;
(2) Identifies the types of schemes that present a high risk of abuse;
(3) Reminds stakeholders of the importance of correctly applying relevant CRS due diligence procedures in order to help prevent such abuse; and
(4) Explains the next steps the OECD will undertake to further address the issue, assisted by public input.

The OECD is considering a range of additional approaches to prevent the abuse of CBI/RBI schemes.

This may include both tax compliance and policy related measures and will take into account the possible role of all stakeholders involved, including the jurisdictions offering these schemes, the tax administrations of jurisdictions participating in the CRS, financial institutions subject to CRS reporting, the intermediaries promoting the schemes and taxpayers.

Public input is sought both to obtain further evidence on the misuse of CBI/RBI schemes and on effective ways for preventing such abuse. Such input will be taken into account in determining the next steps that will be taken.

Interested parties are invited to send their comments on this consultation draft by 10 March 2018 by email to corporate@investmentmigration.org in Word format.
 

Further reading:
Moreover, on 11 December 2017, the OECD released a consultation document seeking stakeholder input on model mandatory disclosure rules requiring disclosure of CRS avoidance arrangements and offshore structures. This consultation document can be found here.
The implementation handbook for CRS can be obtained from this link.

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