On 15 July 2014, the Organisation for Economic Co-operation and Development (OECD) published the full version of the standard for the automatic exchange of information on financial tax accounts. The document contains the model of the agreement on the competent authority; Common reporting standard; Comments. The Common Information Standard (SIR) invites legal systems to obtain information from their financial institutions and to automatically exchange this information each year with other jurisdictions.” Currently, more than 100 jurisdictions have made a public commitment to implement them. STEP is a member of the HMRC Advisory Group and the OECD Business and Industry Advisory Committee (BIAC) for IBS. The automatic exchange of information (AIA) allows the automatic exchange of a predefined set of information between the tax authorities. The AIA standard requires an annual exchange of information on financial accounts managed by non-resident individuals and businesses in a pre-defined format. The information exchanged includes financial account information (for example. B the financial institution that maintains it, the account number and account balance) and the account holder information (for example. B, name, address, date of birth and tax identification number).
“Learn more about the automatic exchange of information The AIA Implementation Report provides more detail on the implementation of the new Automatic Information Exchange (AIA) standard on offshore financial accounts. Its content reflects the situation as of November 24, 2019. A brief guide has been added: Information for account holders All European Union (EU) countries, China, India, Hong Kong, Russia and 109 countries have agreed to become signatories.  Nevertheless, many countries will not participate in the automatic exchange of information.  Many of those who have not signed are small countries. In April 2016, shortly after the publication of Panama`s controversial documents, Panama adopted the Multilateral Competent Authorities Agreement (MCAA)  and in January 2018 signed the MCAA in Paris, which joined the CRS MCAA as the 98th jurisdiction.  In the United States, another cross-border approach to tax compliance is promoted by the Foreign Account Tax Compliance Act (FATCA). [Citation required] The United States receives information on the accounts of U.S.
citizens in many countries because of FATCA`s compliance requirements. In many cases, the United States, by sharing banking data with countries, is used for accounts held by its citizens in the United States, but not automatically, as requested by the United States the full version of the standard contains comments and guidelines for implementation by governments and financial institutions, detailed models and standards for harmonized technical and computer modalities. , including a standard format and requirements for secure data transmission. Implementation of the EOIR standard requires each jurisdiction to respond effectively to the demands it receives from its trading partners. The EOIR standard is therefore based on three key requirements: on April 19, 2013, G20 finance ministers approved automatic exchange as a new planned standard.