Filippo Noseda has examined the impact of the OCED's Common Reporting Standard (CRS) on trusts at a time when they are under threat in a number of continental European jurisdictions in an article which was first published in Trust Quarterly Review, Volume 13, Issue 3 2015. Filippo concludes that these are unprecedented times for private clients and that practitioners and interested governments must act now and it is hoped that this article will aid the debate.
A summary of the article is below, along with a link to the full content.
- While the aim of FATCA and CRS to eradicate tax evasion is legitimate, the provision of unlimited information to treaty partners who have decided to disregard trusts as a matter of public policy should be a reason of significant concern for any Anglo-Saxon jurisdiction seeking to enter into negotiations concerning the provision of automatic information.
- That some of the relevant jurisdictions are EU member states should raise further concerns, as there should be legitimate expectation that member states will respect and, as far as possible, recognise, legal structures originating from other member states.
- Practitioners should adopt an activist approach and raise their concerns with their professional bodies and government representatives. In the case of the EU registers of beneficial ownership, assiduous lobbying by STEP, the Law Society and other professional organisations, as well as by activist practitioners, has already succeeded in diverting a major crisis. It is now time to focus efforts on the implementation of the CRS.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
