Tuesday, October 24, 2017
Mexico has received tax information from 38 jurisdictions after the completion of the first "automatic" transfers of information under the OECD's new international tax transparency standard, the Common Reporting Standard.
The Common Reporting Standard, developed in response to the G20 request and approved by the OECD Council on July 15, 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.
To capture a wide range of information, the Standard requires not only deposit-taking banks to report, but also custodial institutions, certain investment entities, and certain insurance companies. The type of account information to be reported on includes account balances, interest, dividends, and sale and redemption proceeds from financial assets.
Mexico said that participating in the CRS will provide the tax authority with the necessary information to keep track of the overseas assets of its citizens for tax enforcement purposes.
Mexico signed up to the CRS in 2014. It is among 49 jurisdictions that began sharing information last month, with 53 more countries to begin exchanging information automatically from next year. Mexico has received information from the following territories: Argentina, Bermuda, Bulgaria, Cyprus, Colombia, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, India, Ireland, the Isle of Man, the Cayman Islands, Italy, Jersey, Latvia, Luxembourg, Malta, Netherlands, Norway, Poland, Spain, South Korea, Spain, Sweden, and the United Kingdom.