The Organisation for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes (“the OECD’s Global Forum”) has assessed Guernsey’s implementation of the standard for the automatic exchange of financial account Information (more frequently known as the Common Reporting Standard (CRS).
According to the report published in November, the overall determination is that the island’s legal framework is ‘in place’ to meet the required standard.
The island’s overall rating concerning the initial assessment of effectiveness in practice is ‘on track’ – the highest possible rating.
The report, issued by the OECD’s Global Forum, reviewed 99 jurisdictions and examines whether the necessary law, processes (including compliance activities) and systems are in place to ensure that the jurisdiction’s financial institutions comply with the standard.
The CRS requires jurisdictions to collect and exchange tax information on financial accounts held in Guernsey by non-residents, including in certain cases where financial accounts are held by entities/legal arrangements that are controlled by non-residents. Accordingly, the review examined if the island is collecting, reviewing and exchanging the appropriate and accurate information.
Rupert Pleasant, CEO of WE ARE GUERNSEY said: ‘This latest report is further recognition of the island’s commitment to international tax cooperation and transparency. As a force for global good, Guernsey was an early adopter of the OECD’s Common Reporting Standard and has been shown to have adhered with this commitment through the successful implementation of the framework in the island.
