CRS: you can run but you can’t hide

HMRC is receiving ever more information under the Common Reporting Standard (CRS). This article explores what data HMRC receives from overseas authorities on financial accounts why the amount of data is increasing over time and what are the implications for financial institutions and taxpayers. The article also outlines the challenges and pitfalls for financial institutions in complying with CRS obligations and how HMRC uses the data it receives.

What data does HMRC receive?

HMRC receives data from tax authorities in other countries via what is called the CRS which was established by the Organisation for Economic Co-Operation and Development (OECD) with the aim of combating tax evasion by taxpayers that hold overseas accounts or investments. Although the CRS was established in 2014 the first exchanges of information did not happen until 2017 when 49 early adopter jurisdictions started their exchanges. The first group included the...