It is a very broad reporting regime that relies extensively on the intergovernmental exchange used for the implementation of the Foreign Account Tax Compliance Act, better known as FATCA and its main purpose is to oblige all financial institutions to identify, classify and report all those customer accounts that have tax obligations in the United States.

In simpler language it is a system of legislative and technical tools that will allow the tax administrations of the cooperating countries to have automatically and periodically available tax information on assets, including bank accounts, investments and others that their taxpayers have abroad.

What is an information exchange agreement?

Through the Information Exchange Agreements (IIAs), a channel for the exchange of information of a tax nature between the tax administrations of the States is established, which is key in fulfilling the objective of preventing fraud and tax evasion.

What is a banking CRS?

Common Reporting Standard CRS, for the acronym in English, is a global system for the automatic exchange of information on financial accounts (AEOI) approved in July 2014, by the Organization for Economic Cooperation and Development (OECD), an international organization that brings together 36 member countries, whose mission is to promote policies that improve the economic and social well-being of people around the world.

With the implementation of the new standard of information exchange, there will no longer be a way to hide the money in offshore bank accounts and for the rest of your assets you will have to pay the corresponding tax.

The ultimate goal is for nations to allocate the resources they charge for taxes on money saved societies and also assets located in offshore jurisdictions, are destined to something useful.

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