Preparing For Common Reporting Standard (CRS) Compliance – Step 1

In sixty days, all Reporting Financial Institutions will be required to file their first set of Information Returns in compliance with Income Tax (Common Reporting Standard) Regulations ("the CRS Regulations").

The Common Reporting Standard ("CRS") is an automatic exchange of information regime that makes it mandatory for all qualifying financial institutions, referred to in the Regulations as Reporting Financial Institutions, to provide information on the details of assets held on behalf of eligible persons.  

The CRS Regulations, issued in August 2019 by the Federal Inland Revenue Service ("FIRS"), officially commenced on 1^st July, 2019.  All Reporting Financial institutions including those that do not have reportable accounts are required to file the first set of reports by the 31^st of May 2020 to cover the period July 1 – December 31, 2019, failing which defaulting financial institutions will incur stiff penalties.