The era of banking secrecy is over: CRS is advancing

The OECD in its report revealed new details of the automatic exchange of tax information. Main conclusions:

• More than 90 countries have exchanged information on 47 million accounts in which individuals held about 4.9 trillion euros since 2018.

• CRS has reduced the popularity of cross-border tax schemes. Between 2000 and 2008, deposits by companies and individuals in more than 40 major international financial centers grew steadily and peaked at $1.6 trillion in mid-2008. But over the past 10 years, the amounts held in these jurisdictions have declined by $551 billion or 34.4%, as they have been forced to become more transparent.

• The UK for 2019 excluded Russia from the list of countries with which it exchanges information automatically, but the Russian tax authorities will potentially be able to obtain information through “usual” request. According to such requests, the tax authorities of different countries learned about the offshore assets of 500,000 individuals, which in 2009-2019 brought income to the countries of the G20 95 billion euros ($107 billion at the current rate), the OECD said in the report.

• The level of tax transparency is "unprecedented". In the coming years the results for the treasury will be much greater, according to OECD Secretary General Angel Gurria. According to Gurria, "We are really approaching a world where is no place to hide."

• Russia in 2018 received information from 58 countries, and sent it to 14. About 10-15% of these data will detect inconsistencies in the reporting of taxpayers, told to the RBC earlier in March, the head of the Department of International cooperation and currency control of the Federal Tax Service - Dmitry Volvach.

In September, a new phase of exchange of information on accounts for 2018 began. We recommend assessing your situation to mitigate the risks of violation of tax and currency legislation in the Russian Federation.