Automatic exchange of information—outline

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Automatic exchange of information—outline
  • FATCA
  • What is FATCA?
  • Implementation of FATCA
  • UK/CDOT Agreements
  • Global Common Reporting Standard
  • What is the CRS?
  • Timetable for the early adopters
  • Implementation of the CRS
  • OECD guidance on the CRS
  • More...

Automatic exchange of information—outline

STOP PRESSThe government has enacted amending regulations that significantly restrict the scope of the UK’s disclosable arrangements rules (which implemented DAC6), with effect from IP completion day (11pm on 31 December 2020). The regulations remove all of the hallmarks other than those under Category D (on automatic exchange of information and beneficial ownership). The Trade and Cooperation Agreement between the UK and EU requires the UK to abide by OECD rules on exchange of information on cross-border arrangements, and Category D is being retained as it enables the UK to comply with the OECD Mandatory Disclosure Rules (MDR). HMRC intends to repeal the existing disclosable arrangements rules entirely, and replace them with new legislation specifically to implement the OECD MDR. HMRC will consult on the new legislation later in 2021.

The exchange of information between HMRC and tax authorities in other territories is an essential tool in enabling authorities both to administer and enforce their own taxes, and to tackle avoidance and evasion. The importance of effective exchange of information has increased over the years as international trade barriers have been reduced and capital has become more mobile.

The UK has historically exchanged tax-related information on request or spontaneously, but in recent years there has been a shift towards the automatic exchange of information. The US Foreign Account Tax Compliance Act (FATCA)

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