Common Reporting Standard

Facts for Prelims
Common Reporting Standard

News: India is pushing to widen the scope of the Common Reporting Standard (CRS) at the G20 grouping to include Non-Financial Assets like real estate properties under the Automatic Exchange of Information (AEOI) among OECD (Organisation for Economic Cooperation and Development) countries.
 

What is Common Reporting Standard?
 The CRS was developed in response to the G20 request and approved by the OECD Council on 15th July 2014.
 It calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis.
 It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
 Presently, the OECD's Automatic Exchange of Information (AEOI) framework provides for sharing of financial account details among signatory countries with an aim to check tax evasion.
 In August 2022, the OECD also approved the Crypto-Asset Reporting Framework (CARF) which provides for the reporting of tax information on transactions in Crypto-Assets in a standardized manner, with a view to automatically exchanging such information.