About presentation of the Common Reporting Standard

Project presentation of amendments to the Tax Code of Ukraine regarding implementation of the General Reporting Standard and due verification of information on financial accounts (CRS) took place today.

CRS was developed by the Organization for Economic Co-Operation and Development (OECD – Organization for Economic Co-Operation and Development). It provides for the annual automatic exchange of tax information between member states of the Multilateral Convention on Cooperation between Competent Authorities on the Automatic Exchange of Information under the CRS standard.

Exchange of tax information regarding accounts of legal entities and individuals will be carried out automatically, annually and according to the residency principle (in contrast to the FATCA law, which uses the citizenship principle).

Essence of exchange is that banks collect information about financial activity on corporate accounts of companies, individual accounts of individuals, private funds and trusts, after which they transfer it to tax authorities of their country, which forward this information to the country of tax residence of owner of such account.

Meeting was held with participation of representatives of the Ministry of Finance of Ukraine, State Tax Service, Committee on Tax and Customs Policy of the Verkhovna Rada of Ukraine, International Program for Public Finance Management in Ukraine (EU4PFM) and representatives of businesses, banks and non-bank financial institutions.