In June 2013 the OECD published a report for the G8 Summit regarding delivering a standardised, secure and cost effective model of bilateral automatic exchange of information in a multilateral context. The
report noted a step change in international tax transparency driven by developments around the globe and the endorsing by the G20 Finance Ministers in April 2013 of automatic exchange of information as the expected new standard. Since the announcement in April 2013 by the Finance Ministers in France, Germany, Italy, Spain and the UK to adopt a FATCA-type information exchange between themselves the move has been endorsed by more than 40 additional countries (including Ireland) which have expressed an interest in the approach.
On 13 February 2014 the OECD published the Common Report Standard which contains the global standard for the automatic exchange of financial account information. The standard has been developed by the OECD working with the G20 countries and in close cooperation with the EU. The Common Reporting Standard comprises the text of the Model Competent Authority Agreement (CAA) and the Common Reporting and Due Diligence Standard (CRS). The Model CAA contains the detailed rules on information exchange and the CRS sets out the reporting and due diligence rules. Both are largely based on the text of the FATCA Model I IGA and Annex I to that agreement.
The financial institutions required to report under CRS, like FATCA, extend beyond banks and custodians and also catch, for example, brokers, certain collective investment vehicles and certain insurance companies. The financial information to be reported in respect of reportable accounts includes all types of investment income, account balances and sales proceeds from financial assets.
On 19 March the 44 countries comprising the Early Adopters Group (which includes Ireland) issued a joint statement committing themselves again to the early adoption of the CRS. In this regard the first exchange of information in relation to new accounts and pre-existing individual high value accounts will take place at the end of September 2017. In effect the commencement date for CRS is likely to be 18 months after the equivalent deadlines set out in FATCA provisions.