UK Legislates For Broader Automatic Tax Information Exchange
HM Revenue and Customs has updated the International Tax Compliance Regulations to include provisions on new automatic tax information exchange agreements and to clarify how non-compliance penalties will apply.
The amendment clarifies due diligence and reporting requirements for financial institutions, to ensure the UK complies with international tax reporting standards, including the US Foreign Account Tax Compliance Act (FATCA) and the OECD’s Common Reporting Standard (CRS), and introduces new information-gathering powers.
The amendment also updates HMRC’s list of approved information-sharing agreements to include the Organisation for Economic Cooperation and Development’s (OECD) Multilateral Competent Authority Agreement on Automatic Exchange of Information (MCAA).
The provisions, which will enter into force on May 17, 2017, enable the UK to comply with automatic exchange of information obligations under the amended European Union Directive on Administrative Cooperation (2011/16/EU), international exchange arrangements relating to the CRS, and the Intergovernmental Agreement with the United States of America to Improve International Tax Compliance and to Implement FATCA.
