Unbelievably a lot of clients aren’t aware about the CRS Common reporting Standard effects on their situation. Long story short : if you hold a bank account in a reporting country and your tax residence is in another reporting country, your tax authorities will understand in September 2017 the balance of your foreign bank account. Please note that Hong-Kong signed the CRS with United Kingdom and Japan (= data exchange between these countries).
Assets managers and bankers, because of the absence of solutions (at least in their minds…) and also to not be accused of aiding tax avoiders and to keep their management fees till the last minute didn’t communicate this so well to their clients.
Immigration to a new country, relocation of the account, investment in particular vehicles there are few solutions which are not designed to avoid the declaration of a foreign account but only to not be part of a first batch of automatically transmitted information.
The automatic reporting is particularly dangerous as it’s the emanation of a political concept NEVER TESTED.
In front of a kidnapping victim a government is adjusting the crime rate; nobody could insure that such a mass of information as the CRS will not partially fall in the gangster’s hands
A lot of tax advisors, lawyers and financial intermediaries are in a denial phase when it’s coming to realize the end of an era of wrongful tax “planning” but in parallel the OECD is also completely in a denial about the dangers of their inception.
Contact Us to understand the effect of the CRS on your personal situation