Common Reporting Standard (CRS) is the latest initiative introduced by the Organization for Economic Cooperation and Development (OECD) to combat tax evasion. CRS has been developed and introduced to ascertain the country of tax residence of financial account holders.
As a UK registered Financial Institution, HBL Bank UK is legally bound by this initiative to gather and report certain information, (including the tax residency of an account holder) to the local tax authorities (HMRC). This information is then exchanged by the local tax authority on an annual basis with relevant authorities in all the respective jurisdictions that are signatories to the CRS Automatic Exchange of Information regime. Details of all signatories and starting dates can be found on the OECD website https://www.oecd.org/ctp/exchange-of-tax-information/MCAA-Signatories.pdf
What does this mean for customers?
Information on both individual and corporate entity customers are reportable under the CRS.
There are additional factors which could affect whether a customer falls under the remit of this regulation, and includes:
- The type of account or product a customer has with us; and
- The jurisdiction of tax residence of the customer.
CRS will not affect all of our customers. HBL Bank UK may be able to determine whether you are reportable or not from the information we hold on our systems.
In the event we require further information or clarification, we shall contact you directly in order to confirm that we have correctly identified your country of tax residency and will ask you to complete a self-certification form, and perhaps to provide additional documentation as deemed necessary.
It is important that you respond promptly and accurately as this may enable us to remove you from the list of reportable persons to HM Revenue & Customs (HMRC) based on the information you provide therein.
If you are deemed reportable, we are bound by law to share your information with the HMRC. This information will include your name and address, your tax identification number, your date of birth, the country(ies) in which you are resident for tax purposes, your account balance and any interest you may have received from us throughout the year. If you are a tax resident of the UK you will not need to have any information reported to the HMRC under CRS.
If you are not sure of the countries in which you are resident for tax purposes or you are uncertain about your tax status, then we strongly recommend that you seek professional tax advice and assistance prior to completing the form.
HBL Bank UK is not equipped to provide tax advice and cannot comment on your personal tax obligations.
HBL Bank UK is committed to ensuring full compliance with its legislative obligations and we look forward to receiving your usual cooperation.