On 26th January 2016 the regulations providing for the automatic exchange of information in relation to tax – otherwise known as the Common Reporting Standard on Automatic Exchange of Financial Account Information – were laid before the meeting of the States of Guernsey and are thus deemed to have come into effect on 1st December 2015.
As is the case with those other jurisdictions which have signed up to this OECD – developed framework, the CRS regulations require financial institutions who are subject to the regulations, to implement due diligence procedures in respect of financial accounts which they maintain. These procedures are required in order to ensure that the financial institutions are able to identify and report certain information to the Tax Authority in Guernsey thus enabling the Tax Authority to forward the information to the appropriate overseas tax authorities. The first exchange of information takes place in 2017 and relates specifically to 2016 data.
A copy of the regulations together with draft Guidance Notes and the OECD’s implementation book, are available on the government’s website, www.gov.gg, or from Icorserv directly.