Common Reporting Standard will come into effect in January 2016

The Com­mon Report­ing Stan­dard (CRS) is a mul­ti­lat­er­al agree­ment that was signed by 50 juris­dic­tions in Octo­ber last year in Berlin. The main aim of the agree­ment is the auto­mat­ic exchange of finan­cial infor­ma­tion to pre­vent tax eva­sion and fraud. The sign­ing juris­dic­tions will adopt the CRS from 1 Jan­u­ary 2016.

The new reg­u­la­tions require the gov­ern­ments to col­lect detailed infor­ma­tion about account hold­ers and own­ers from all finan­cial insti­tu­tions, and share them with oth­er states that signed the treaty. The trans­fer of infor­ma­tion will occur auto­mat­i­cal­ly once a year, and not just upon request of a state, as it is now. This also means that the finan­cial author­i­ties will be able to close­ly mon­i­tor bank accounts, which is par­tic­u­lar­ly inter­est­ing with regards to accounts in off­shore coun­tries (Caribbean, Mona­co, Switzer­land, etc), as these coun­tries have also signed the agree­ment. Fidu­cia­ries will not be able pro­tect account hold­ers and own­ers any longer as the banks are required to dis­close the UBO (Ulti­mate Ben­e­fi­cial Own­er), regard­less of who is stand­ing in as a trustee. This agree­ment is applic­a­ble for com­pa­ny and pri­vate accounts alike.

Dr Wern­er & Part­ner are endors­ing and sup­port­ing this mea­sure!

We have been advis­ing our clients that this exchange of infor­ma­tion has been and is always pos­si­ble. None of our clients will need to be con­cerned about neg­a­tive reper­cus­sions aris­ing from the upcom­ing change.

Even before the CRS, we have gone the extra mile with our clients, and this will con­tin­ue on. Some of our clients are real­is­ing now why we made such efforts, and many that were inter­est­ed in the past will realise why we strong­ly advised them against estab­lish­ing the com­pa­ny in Mal­ta or an off­shore coun­try.

Future clients can be cer­tain that we have been advis­ing our clients about this for over 10 years, and we will do the same in the future to offer the best pos­si­ble long-term ser­vice. You are wel­come to con­tact us for a per­son­al con­sul­ta­tion regard­ing the CRS, com­pa­ny estab­lish­ment in Mal­ta or for a relo­ca­tion to Mal­ta.

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT -Advanced Diplo­ma in Inter­na­tion­al Tax.

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