Finance Minister to issue a decree for the implementation of OECD’s CRS

Finance Minister to issue a decree for the implementation of OECD’s CRS

Cyprus Minister of Finance Harris Georgiades will issue a decree for the implementation of the OECD`s Common Reporting System (CRS).

Sources told CNA that the decree is at Cyprus Law Office for legal vetting and is expected to be issued in the coming days, as the implementation of CRS begins on January 1 2016.

Cyprus is among the 56 early adopter countries for which the CRS implementation will be begin in 2016, with the first exchange of information to take place in September 2017 covering 2016. For the rest 40 countries that are not included in the early adopters, reporting will begin in 2018.

The Standard, developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.

Marios Skandalis member of the board of directors of the Cyprus Institute of Certified Public Accountants, said that CRS represents a tool at the disposal of tax authorities to locate hidden income and capital located overseas.

“The information to be accessed by the Cyprus government will enable it to locate and tax income and capital belonging to Cypriot nationals which have been hidden in banking institutions abroad,” he said in an interview with CNA in October 2015.