Common Reporting Standard (CRS)

FREQUENTLY ASKED QUESTIONS

What is the Common Reporting Standard (CRS)?
The Common Reporting Standard (CRS) was developed by the Organisation for Economic Co-Operation and Development (OECD) and endorsed by the G20 Finance Ministers as the new global standard for the automatic exchange of financial account information to better fight tax evasion and improve tax compliance.

How does it work?
Financial institutions across Canada are required by law to identify accounts for individuals and entities that should be reported, and then securely report the required information to the Canada Revenue Agency (CRA). Once CRA has received the information, it will then exchange the information with the tax authority of the jurisdiction in which the individual or entity is a tax resident. CRA will only exchange information with jurisdictions with a Competent Authority Agreement (CAA) in place.

How does CRS differ from the U.S. Foreign Account Tax Compliance Act (FATCA)?
As with FATCA, CRS is an effort to stem tax evasion. However, the scope of FATCA is limited to the identification and reporting of U.S. citizens and residents (taxpayers).

CRS is an international standard with reporting based on tax residency in Reportable Jurisdictions.

Should I be concerned about the confidentiality of my personal information?
Financial institutions that request information solely for the purposes of CRS are not permitted to use the information for any other purpose. The information will be provided to CRA in accordance with CRS legislation. Information exchanged between jurisdictions is subject to confidentiality rules and exchanging jurisdictions must also ensure the protection of personal data.

If you have concerns about the confidentiality of your personal information, please contact CRA.

If you have received any correspondence regarding CRS from Aldergrove Credit Union, and have any questions or concerns, please use the contact information provided to you.

What should I do if I’m asked to provide ACU with information?
As ACU is legally obligated to collect certain information for CRS purposes to identify Reportable Accounts and report such accounts to CRA, members should complete the Declaration of Tax Residence form and provide other documentation or information as requested to allow ACU to report accurately.

Can an individual account holder be a tax resident in more than one country at a time?
Yes. Generally, an individual will only have one jurisdiction of residence. However, an individual may be resident for tax purposes in two or more jurisdictions. The domestic laws of the various jurisdictions define the conditions under which an individual is to be treated as resident for tax purposes.

Can ACU employees help members by explaining the conditions for which a person is considered a tax resident in a particular jurisdiction?
ACU employees are not able to provide legal or regulatory advice as it pertains to CRS or any other tax matters. It is the responsibility of the member to determine their tax residence(s).

Participating Jurisdictions have provided (or will provide) to the OECD an overview of tax residency rules applicable to their jurisdiction. The jurisdiction-specific overviews can be found on the OAEC Automatic Exchange Portal – http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency

Members should check with CRA or speak with their tax advisor if they are unsure of their tax residence(s).

Does CRS apply to insurance policies?
Certain cash value insurance contracts and annuity contracts are subject to CRS.

Are other financial institutions complying with CRS?
All financial institutions in Canada are legally obligated to comply with CRS procedures to identify and report Reportable Accounts to CRA.

Where can I find more information about CRS?
For more information about CRS, please visit the OECD website - http://www.oecd.org/tax/automatic-exchanklge/
 

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