Credit to: Tax Avoidance News
: New tool for the taxman from January 1
Cyprus will as of January 1, 2016 have a new tool in its arsenal to identify monies hidden abroad as the island will begin implementing the Common Reporting Standard (CRS), the Institute of Certified Public Accountants said.
The CRS is formally referred to as the Standard for Automatic Exchange of Financial Account Information. It is an information standard for the automatic exchange of information (AEoI), developed in the context of the Organisation for Economic Co-operation and Development (OECD).
The legal basis for exchange of data is the Convention on Mutual Administrative Assistance in Tax Matters and the idea is based on the US Foreign Account Tax Compliance Act (FATCA) but more expansive.
Speaking to the Cyprus News Agency, a member of the board of the accountants association, Marios Skandalis estimates that the implementation of the standard would be positive for Cyprus as it would help eliminate any shady practices in the financial sector, which would aid in attracting ?healthier? business to the island.
?Such a development can only have positive result in the Cypriot economy and the services sector,? he said.
Will be looking forward on this tool.