In an effort to achieve greater transparency and better exchange of information globally, the Organization for Economic Cooperation and Development (OECD) has initiated the Common Reporting Standard (‘CRS’), aiming at improving international tax compliance and preventing tax evasion, through the automatic exchange of information between the countries that implement CRS.
The CRS was approved by the OECD Council on 15 July 2014. As at 11th December 2015 97 jurisdictions have committed to implement it and agreed to a timetable for the first exchange of information.
The Government of the Republic of Cyprus signed, on 29th October 2014, the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (the ‘Agreement’) in relation to agreements with the 57 participating jurisdictions (‘early adopters’), as at 11th December 2015, in order to improve international tax compliance; a full list of the committed participating jurisdictions can be found on the OECD's website found at:
How will CRS affect cdbbank’s customers?
As a result of the Agreement, all local Financial Institutions, including cdbbank, have to comply with the requirements of CRS as from 1st January 2016. cdbbank has to obtain from its customers certain information relating to their tax residence(s) as follows:
- From all new customers (i.e. all holders of new accounts opened on or after 1st January 2016), and,
- From certain pre-existing customers (i.e. holders of accounts in existence on 31st December 2015) which may be affected by CRS.
cdbbank is required to collect a self-certification form which will determine the customer’s residence(s) for tax purposes and automatically exchange information on all reportable accounts that fall within the scope of CRS on an annual basis.
cdbbank cannot comment on a customer’s tax position. Customers should obtain advice from their tax advisor.
More information regarding CRS can be found on the OECD’s website at:
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