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Public Speaking

How to comply with the Mandatory Disclosure Rules on CRS Avoidance and Opaque Offshore Structures


 

UPCOMING EVENTS:

ISLE OF MAN, DOUGLAS, FRIDAY 27 MARCH 2020, PALACE HOTEL, 14.00-17.30


JERSEY, ST. HELIER, WEDNESDAY 25 MARCH 2020, POMME D’OR HOTEL, 14.00-17.30


GUERNSEY, ST PETER PORT, TUESDAY 24 MARCH 2020, THE OLD GOVERNMENT HOUSE HOTEL, 14.00-17.30

MALTA, FRIDAY 6 MARCH 2020, PALAZZO DE PIRO, 14.00-17.30

NICOSIA, WEDNESDAY 4 MARCH 2020, THE LANDMARK NICOSIA, 14.00-17.30

GIBRALTAR, MONDAY 2 MARCH 2020, SUNBORN GIBRALTAR, 14.00-17.30




 

Financial Institutions will be required to implement procedures in order to determine and disclose whether they have promoted avoidance arrangements or acted as a service provider to an avoidance arrangement.


Overview


BEPS Action 12 Recommendation, EU DAC6 and OECD Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structure - Key Elements:

  • CRS Avoidance Arrangement

  • Promoter

  • Service Provider | Relevant Services - Client | Reportable Taxpayer

  • CRS Legislation

  • Partner Jurisdiction



AGENDA


CRS AVOIDANCE ARRANGEMENTS


Disclosure

  • CRS Avoidance Arrangement – General Hallmarks

- Promoter criteria and requirements

- Service Provider criteria and requirements

  • CRS Avoidance Arrangement – Specific Hallmarks

- Specific Hallmark: Residence by Investment | Citizenship by Investment

- Abuse of Residence by Investment Schemes – OECD Consultation | Comments

- Abuse of Residence by Investment Schemes – OECD Residence Blacklist and Enhanced Due Diligence

  • Geographic and Partner Jurisdiction requirements


Non-Disclosure

  • Legal Professional Privilege

  • Reporting Taxpayer disclosure

  • Self incrimination


Reporting

  • Disclosure report contents

  • Disclosure report filing dates for Promoters

  • Disclosure report filing dates for Service Providers

  • Duplicate disclosure reports


Enforcement

  • Non-compliance penalties and enforcement


Operational Integration, Next Steps

  • MDR Manual vs. Integrated AML | CRS | MDR Manual

  • “Promoter” Internal Assessment Reviews – Best Practice Guidance

  • MDR vs. Client Communications – Tipping Off?

  • Employee contract terms vs. MDR gross negligence?

  • “Service Provider” New Business MDR Review – Best Practice Guidance



OPAQUE OFFSHORE STRUCTURES


Key Requirements:

  • “Passive Offshore Vehicle” explained

  • “Structure” and “Opaque Structure” explained

  • “Basic Information” explained

  • Specific Opaque Hallmarks explained, including discussion whether a strict liability test is applied


Operational Integration, Next Steps

  • Opaque Structures vs. Economic Substance Rules, operational synergies?

  • Integrated AML Manual vs. MDR Manual?

  • Best practice “Promoter” guidelines

  • Best Practice “Service Provider” guidelines

  • Summary: Disclosure, Non-Disclosure and Reporting requirements


 













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