CRS - Frequently Asked Questions
What is the CRS?
The CRS is a global standard for the automatic exchange of financial information between jurisdictions where it is in effect (“participating jurisdictions”). The Organisation for Economic Co-operation and Development (OECD) introduced the CRS in order to combat tax evasion and to improve cross-border tax compliance. It came into effect for early adopter jurisdictions on 01 January 2016 and in late adopter jurisdictions from 01 January 2017.
In which countries does the CRS apply?
More than 100 jurisdictions have adopted the CRS.
The full list of jurisdictions that have committed to the implementation of the CRS is available on the OECD website.
How will Sagicor Bank (Barbados) Limited collect your tax information and report under the CRS?
Under the CRS, financial institutions (FIs) such as Sagicor Bank (Barbados) Limited (the Bank) in participating jurisdictions must collect certain information regarding a client’s status and country (or countries) of tax residence, and for certain types of entity clients, the country (or countries) of tax residence of the individual(s) who control them. In participating jurisdictions, compliance by FIs with the CRS is mandatory under local law.
FIs must report information on each financial account held by clients who are tax residents in other reportable jurisdictions to the tax local authorities in the country where the account is held. This information then will be exchanged annually by that tax authority with the tax authority in each reportable jurisdiction in which the client is tax resident.
When did CRS reporting begin?
Financial institutions in early adopter jurisdictions commenced reporting to the local tax authority from March 2017.
In late adopter jurisdictions, reporting commenced from March 2018 onwards. The first exchange of information between tax authorities was in September 2017 for early adopter jurisdictions, and September 2018 for late adopter jurisdictions.
The list of signatories of the CRS multilateral Competent Authority Agreement (CAA) contains the countries and corresponding timelines for the first information exchange.
What information is reportable under the CRS?
Generally, the reportable information* includes:
Name;
Address;
Country (or countries) of tax residence;
Taxpayer Identification Number (TIN);
Date and place of birth (for individuals or Controlling Persons);
Account number;
Account balance;
Certain payments made into the account.
*Note that these may be subject to change under local legislation or guidance.
For an account that is jointly held by one or more reportable persons and one or more non-reportable persons, the entire account is treated as a reportable account. Reportable information relating to the entire account and each reportable person will be submitted to each designated local tax authorities in accordance with local legislation or guidance.
How does the CRS affect your relationship with the Bank?
To comply with its obligations under the CRS, the Bank may be required to collect certain tax-related information and/or documents from the holders of new and pre-existing accounts. In addition, the Bank may be required to report and share information regarding account holders and their financial accounts with the local tax authority where the account is maintained and in accordance with the local legislation.
In order to enable the Bank to comply with these obligations, you may be required to complete an applicable CRS form. Without a valid CRS form it may not be possible for you to open a new account with the Bank. You can download these from the Bank’s CRS page .
The CRS forms may also be obtained from the Client Experience Team.
You should be aware that in providing the certification contained in the CRS Form, a statement that is false, misleading or incorrect may be regarded as an offence and, therefore may be subject to penalties under relevant laws or regulations.
How should you determine your country (or countries) of tax residence for purposes of the CRS?
The Organisation for Economic Co-operation and Development (OECD) provides general information regarding tax residence.
If you need any further assistance to determine your country (countries) of tax residence or in completing the relevant CRS forms, please seek professional tax or legal advice. Neither the Bank nor any of its employees is able to assist in these matters.
What is a Taxpayer Identification Number, and do all countries issue such a number?
A Taxpayer Identification Number, or TIN, is a unique combination of characters assigned by a country’s tax authority to a person (individual or entity) and used to identify that person for the purposes of administering the country’s tax laws.
Some countries do not issue a TIN in any situation; such countries include Bahrain, Bermuda and the United Arab Emirates (UAE). Other countries issue TINs only to entities, but not to individuals; such countries include Sri Lanka, Oman, and Qatar. In other countries, whilst TINs may be issued to both individuals and entities, individuals or entities in particular situations may not be issued with a TIN.
In some countries, another high integrity number with an equivalent level of identification (a functional equivalent) may be used instead of a TIN to identify a particular person.
For entities, such functional equivalent TIN types include, the Permanent Account Number (PAN) in India, and the Business Registration Number in Hong Kong;
For individuals, such functional equivalents may include a social security/national insurance number, a citizen/personal identification/service code/number, or a resident registration number. For example:
In the UK the National Insurance Number (NINO), or the Unique Taxpayer Reference (UTR) serves as a TIN for individuals;
In Hong Kong, the Hong Kong Identity Card (HKID) Number serves as a TIN for individuals;
In Pakistan, the Computerised National Identity Card (“CNIC”) serves as a TIN for individuals;
In Guernsey, the social security number serves as a TIN for individuals.
The above examples are neither meant to be exhaustive, nor to constitute tax advice. If you need help to determine your TIN, please seek professional tax or legal advice.
Will your CRS form expire after it has been submitted to the Bank?
The CRS form will remain valid unless there is a change in circumstances which affects your tax residence status or where any information provided in the form becomes incorrect. In providing the CRS form to the Bank, you, as an account holder, are certifying that you will inform the Bank within 30 days of any such change in circumstances.
What happens if you do not respond to our request for tax information under the CRS?
If you do not respond to our request for information, we may need to treat your account as a reportable account for purposes of the CRS. This means that we may be obliged to report information regarding financial accounts held by you to the designated local tax authority in accordance with local legislation of the participating jurisdiction where the financial account is maintained. The local tax authority may exchange this information with the tax authority of another country in accordance with relevant laws.
In addition, we may, in certain circumstances, decline any requests for new accounts, decline to enter into any further transaction with you, and/or close your existing account(s) with us.
You have previously provided information under the Foreign Account Tax Compliance Act (FATCA). Why is the Bank asking you to provide more information under the CRS?
The CRS and FATCA are separate regulatory requirements. The Bank is obligated to comply with both client tax information regimes.
What is the difference between the CRS and FATCA?
The CRS and FATCA both target offshore tax evasion and require financial institutions to identify clients’ tax statuses, monitor clients for change in circumstances and report clients’ account details, as applicable.
However, FATCA focuses only on tax evasion by US Persons, whilst the CRS targets offshore tax evasion based on an account holder’s country (or countries) of tax residence.
Where can more information on the CRS be found?
More information on the CRS can be obtained from:
The Organisation for Economic Co-operation and Development (OECD)’s CRS page; https://www.oecd.org/tax/automatic-exchange/common-reporting-standard/