Soon to be released 'Common Reporting Standard' promises new FATCA-type obligations around the world

January 2014

The starting date for various obligations under the Foreign Account Tax Compliance Act (FATCA) is July 1, 2014. Some associate this date with a long and weary process that started back in 2010 with the passage of the United States HIRE Act, but it also marks a milestone in the ever increasing movement towards greater tax transparency. Even before this date, another significant milestone is set to occur -- the release of the Common Reporting Standard (CRS) in February 2014 by the Organisation for Economic Cooperation and Development (OECD). Like US FATCA, the CRS will require financial institutions around the globe to play a central role in providing tax authorities with greater access and insight into taxpayer financial account data including the income earned in these accounts.