CRS Automatic Exchange
About CRS Automatic Exchange
The Common Reporting Standard, developed by the OECD in 2014, requires participating countries to automatically exchange financial account information. Over 100 countries participate in the CRS. The CRS was inspired by FATCA but is multilateral rather than bilateral. Under the CRS, banks report account balances, interest, dividends, and capital gains to their national tax authority, which exchanges the information with other participating countries. The CRS has significantly increased transparency in international taxation. However, the US is not a participant in the CRS. This means that the US can receive information through FATCA but does not reciprocate fully, making the US an attractive destination for foreign wealth. The CRS has been credited with reducing offshore tax evasion but has not eliminated it.
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