UK and International Tax news

Automatic Exchange Of Information Deadline

Friday 26th May 2017

The deadline for submitting Automatic Exchange of Information returns for the year ended 31 December 2016 is 31 May 2017.

Automatic Exchange of Information [AEOI] agreements are made between the UK and other countries and these allow for the exchange of information between tax authorities of different countries about financial accounts and investments to help stop tax evasion.

Financial institutions, including banks, building societies, insurance companies, investment companies, are to provide information on non-UK residents with financial accounts and investments in the UK to HMRC, which will share this information with the relevant countries.

HMRC will also receive information from other countries about UK residents with financial accounts and investments overseas.

The UK has AEOI agreements currently under four regimes, being:

FATCA – the agreement with the US that requires UK financial institutions to report to HMRC on US customers that hold accounts with them.

CDOT – the agreement between the UK and its Crown Dependencies and UK Overseas Territories to report on those who are tax residents in one territory and hold accounts in the other.

CRS – the Common Reporting Standard, being the standard for all automatic exchange of financial information.

The Directive on Administrative Cooperation, which applies the Common Reporting Standards throughout the EU.

To date 50 jurisdictions, including European countries, UK CDOTs, Argentina, Columbia, India, South Africa, have committed to undertake their first exchanges by 2017. A further 50 have committed to make their first exchanges by 2018 and these include low tax jurisdictions including Hong Kong, Mauritius, Monaco, Panama, Switzerland, UAE, Vanuatu.

 

If you would like further details on the Convention, please contact Keith Rushen on 0207 486 2378.

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