Common Reporting Standard (CRS)

Overview


Common reporting standards (CRS)

Governments around the world have introduced standards to allow increased sharing of information between tax authorities under a framework known as Automatic Exchange of Information (AEoI). One piece of legislation is known as the Common Reporting Standard (CRS) and is seen as a critical tool in the world wide fight against tax evasion.

To date more than 100 jurisdictions have committed to adopting the CRS. These include countries such as the UK as well as areas that are subject to their own distinct tax regulations such as Jersey, Guernsey, Isle of Man etc. Any reference to countries in the FAQs relates to all jurisdictions who have committed to adopting the CRS.

The full list of in-scope jurisdictions is available on the OECD website.

To comply with the CRS, Participating Countries must obtain certain customer information from their Financial Institutions and exchange that information on an annual basis with other Participating Countries.

In the UK, we are required to complete CRS reporting to HM Revenue and Customs (HMRC) by 31 May every year in respect of customers we have identified as Reportable Persons or Reportable Entities.
 

Frequently asked questions


CRS Frequently asked questions

To help you understand the Common Reporting Standard (CRS) and why Halifax needs to comply, we put these FAQs together.

Important Note: Halifax can’t give advice to customers on CRS or any other tax-related matters.

If you have further questions or you do not understand your tax obligations, please seek independent advice from a tax or financial adviser.

 

Glossary


CRS Glossary

Below are some quick definitions of some common tax compliance jargon.
 


  • Controlling persons are the natural persons who have ultimate control over an entity.

    In the case of a trust, the controlling persons include the:

    • Settler
    • Trustee
    • Protector (if any)
    • Beneficiary / class of beneficiaries
    • Any other natural person exercising ultimate effective control over the trust (including through a chain of control or ownership)

  • Under Common Reporting Standard (CRS) this is as a legal person or arrangement such as a corporation, organisation, partnership, trust or foundation.

    An entity is any customer that holds a business account, product or service. Under CRS, sole traders are not entities but individuals.


  • The term “Financial Account” means an account issued or supported by a Financial Institution.

    This includes;

    • Depository Account
    • Custodial Account
    • Equity or debt interest in investment entities
    • Cash Value Insurance Contract
    • Annuity Contract

    A Financial Account is not an excluded account as per the CRS.


  • A ‘jurisdiction’ is an area with its own distinct tax regulations and depends on the country, county, city or state.


  • This is a country that has made a commitment to exchange information in line with the OECD CRS.

    There may not be an effective agreement in place, meaning we don’t need to report anything just yet.


  • This is a country that has an agreement in place to exchange information in line with the OECD CRS.


  • If a customer holds a Financial Account and is a resident for tax purposes in a Reportable Country, or suspected of being tax resident in such country, they are reportable for CRS.

    Each country has its own rules for defining tax residence. 


  • A ‘Reportable Person’ is any individual reported under the CRS regulations. A person is only reported under the CRS regulations when they are identified as being tax resident in a Reportable Country and hold Financial Assets outside of this country. For example a French tax resident individual holding a current account with Halifax would be reported under CRS annually to HMRC.

    As well as personal account holders, certain entities resident in a Reportable Country or those which have individual Controlling Persons who are resident for tax purposes in Reportable Countries may be reportable.


  • We may write to a customer if they have a change in circumstances that could make them a tax resident in a Participating Country.

    We may also write to pre-existing customers who have Financial Accounts with us, where we do not have tax residency information or new accounts are opened, to complete a Tax Residency Self-Certification form.

    You need to tell us if:

    • money has been taken from your account
    • you’re worried a payment you’ve made is fraudulent.

    Or, if someone:

    • knows or has asked you for your account information
    • has managed your account without your approval
    • has made you move their money into your account.

     

    Call us anytime on  from outside the UK.