The CRS calls on participating jurisdictions to exchange financial account information to enable tax authorities to combat offshore tax evasion.
What is the Common Reporting Standard (CRS)?
CRS is an internationally agreed standard for the automatic exchange of financial account information between jurisdictions for tax purposes. Endorsed by the Organisation for Economic Co-operation and Development (OECD) and the Global Forum for Transparency and Exchange of Information for Tax Purposes, the CRS is intended to detect and deter tax evasion by tax residents of jurisdictions through the use of offshore banks and other Financial Accounts.
Are you required to register and report under the CRS?
Financial Institutions (FI) that are resident in Singapore, or the branches of FI that are located in Singapore are required to review their activities to determine if they have registration and reporting obligations under the Singapore law. FI include custodian and depository institutions (eg. licenced trust companies, banks and finance companies), investment entities (such as trusts, fund managers, brokers, financial advisors, wealth managers, brokers, etc) and specified insurance companies.
The CRS registration deadline for an entity that became a Reporting Singapore Financial Institution (SGFI) during 1 Jan 2021 to 31 Dec 2021 is 31 March 2022 and will be required to submit CRS returns by 31 May 2022. Reporting SGFIs are also required to put in place processes to conduct due diligence on all Financial Accounts in order to report the relevant account information accurately to the Inland Revenue Authority of Singapore (IRAS). Failure to register, file a CRS return, perform due diligence on Financial Accounts or comply with the CRS Regulations will attract a fine and/or imprisonment.
How can we help
Ensuring compliance with CRS regulations is essential for Financial Institutions in Singapore to avoid potential penalties.
At Mazars, we can assist you in reviewing your operations to determine if you have a registration obligation and advise you on reporting and due diligence requirements. In view of the upcoming deadline to register of 31 March 2022 and to file a return by 31 May 2022, taxpayers are encouraged to conduct this assessment as soon as possible in order to avoid penalties.