22nd October 2018
The Common Reporting Standard (CRS) has undoubtedly grabbed everyone’s attention as more countries sign up to this agreement to share financial information across borders, and we certainly expect this to remain a hot topic of discussion as more authorities commit to this cause.
Switzerland makes its first exchange
In fact, in recent news it was revealed that Switzerland – a destination with a history of tax evasion concerns – has now made its first exchange of information. According to the Swiss Federal Council, the Federal Tax Administration shared data on approximately two million accounts to partner states in September.
Under the agreement, Swiss authorities have committed to sharing financial information with EU member states, Australia, Canada, Guernsey, Iceland, the Isle of Man, Japan, Jersey, Norway and South Korea. Although technical challenges have meant that some member states have struggled with these transmissions so far.
A complex compliance world
With the CRS being introduced as a means of preventing fraudulent financial activity across borders, recruitment agencies placing contractors internationally are now facing a complex compliance landscape that is more heavily policed. Even those who are confident that they are not associated with any unscrupulous behaviour should be wary, as simple reporting errors could also have repercussions.
Of course, the best way to ensure your firm and its contractors are compliant is to partner with an expert in international contractor management solutions. Contact our team today to find out more.