Which is the initial date for the automatic exchange of information and which are the jurisdictions?
In September 2017, a first group of countries will be in a position to begin the automatic exchange of information.
There is a second group that is expected to exchange information starting September 2018.
The information will be exchanged annually and automatically, i.e., without need to request foreign authorities information referring to any specific case due to fraud presumptions.
First group of countries – September 2017
Germany, Anguilla, Argentina, Barbados, Belgium, Bermuda, British Virgin Islands, Cayman Islands, Chile, Colombia, Croatia, Curacao, Cyprus, Czech Republic, Denmark, Dominica, Estonia, Finland, France, Gibraltar, Greece, Guernsey, Hungary, Iceland, India, Ireland, Isle of Man, Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mauritius, Mexico, Montserrat, Netherlands, Niue, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Republic Slovakia, Slovenia, South Africa, Spain, Sweden, Trinidad & Tobago, Turks & Caicos, United Kingdom.
Second group of countries – September 2018
Andorra, Antigua & Barbuda, Aruba, Australia, Austria, Bahamas, Belize, Brazil, Brunei Darussalam, Canada, China, Costa Rica, Granada, Hong Kong (China), Indonesia, Israel, Japan, Marshall Islands, Macao (China) , Malaysia, Monaco, New Zealand, Qatar, Russia, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Samoa, Saudi Arabia, Singapore, San Martin, Switzerland, Turkey, United Arab Emirates, Uruguay.
Which are the procedures prior to the exchange in the case of a financial institution?
In general, each bank and financial institution must undergo their due diligence of their clients to determine the tax residence of the holder(s) of the account. This data is fundamental. There are three options regarding who the account holder can be:
Each financial or banking institution must give the necessary and sufficient information to identify the individual and final beneficiary of the banking and/or investment account.
What information will be requested?
Information to be disclosed includes the name, domicile, country of residence, tax identification number and date of issuance and place of birth (in case of individuals) of each holder of a reportable account. As for legal entities that are controlled by one or more individuals, it must inform the name, domicile, country of residence and tax identification number of the entity as well as the name of every controller. It must also inform the account identification number or its equivalent and balance.
In case of custody accounts, the information includes the amount of interest, dividends and other income coming from the assets under custody, as well as the sales or redemption income of said assets.
The scope of information to be exchanged in this system is very broad. It covers all kinds of banking deposits, negotiable securities and investment portfolios and will include data regarding balances, amounts received from income or transfers.
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