Transparency

The latest research from our World of Private Clients report reveals that a clear understanding and acceptant that transparency requirements are not only here to stay but only set to strengthen, broaden and deepen.

Tax regulation is particularly complex and further complexity may arise as wealth owners grapple with national tax policy reforms that are likely to be introduced post-pandemic. There is an overwhelming appetite for ensuring compliance to stave off unwelcome surprises later down the line.

“Clearly, there is a need for authority access,” says one corporate lawyer in Cyprus. However, there is a downside to transparency – and privacy is the main price that is paid. 32% of our survey respondents are very concerned about these potential privacy and safety, with another 38% being moderately concerned. 

Read Chapter 1 of our research - Transparency

Back to the full report 

A common reporting standard across the world – our interactive map

Common Reporting Standard

In conjunction with the G20, the OECD developed the Common Reporting Standard (CRS) as a global standard for the automatic exchange of information. The OECD Council approved this on in 2014 and, since then, over 100 jurisdictions have confirmed adoption of the CRS by signing a multilateral competent authority agreement.

View our interactive map above to see which jurisdictions are participating, and when they signed up to the CRS. You can also find more information on the latest CRS developments on the OECD’s Automatic Exchange Portal.

It is vital that individuals are aware of the potential tax consequences of reporting under the CRS. If the relevant income or gains that have to be reported have not previously been reported in their country of residence (even for legitimate reasons), they are likely to be investigated by the local tax authorities and could face a large tax bill or worse. No matter which country they live in, putting any tax irregularities right or simply explaining their overseas assets to the tax authorities before the new reporting starts is always likely to be the best option.