The Common Reporting Standard (CRS) was developed in response to the G20 request by the Organization for Economic Cooperation and Development (OECD) to combat tax evasion.
The CRS requires the automatic exchange of certain financial account information on an annual basis between jurisdictions. The CRS sets out the financial account information to be exchanged, the different types of accounts and taxpayers covered, as well as the due diligence procedures to be followed.
MEAB SAL, in conformance with local Law No. 55, dated 27 October 2016, Local Guidance decree No. 1022, and BDL circular No. 139 issued in connection with the implementation of the CRS, complies with the requirements of the CRS and the attendant implementing regulations and agreements.
- Impose an annual reporting on financial accounts opened at the bank classified as reportable pursuant to the CRS.
- Outline a list of indicia demonstrating that a client is a potential tax resident outside of Lebanon and therefore reportable according to the provisions of the CRS requirements. When such indicia exist, the client should provide the bank with a self-certification form for purposes of determining tax residency.
- Oblige the bank to obtain a CRS self-certification form which includes country/countries of tax residence and tax identification number(s).
- Compel the bank, in the event a client refuses to provide the information and documents requested or in the case of contradictory or inconsistent information provided on the self-certification form, to report the existing account to local tax authorities according to the indicia found.
We kindly advise clients concerned with the CRS to seek guidance from a tax professional or visit the OECD website (http://www.oecd.org/tax/automatic-exchange/common-reporting-standard/).
For additional information please contact a branch near you.