Australia: Guidance on CRS circumvention schemes
OECD analysis of residence/citizenship by investment (RBI/CBI) schemes from CRS-committed jurisdictions
OECD analysis of residence/citizenship by investment (RBI/CBI) schemes from CRS-committed
The Australian Taxation Office (ATO) on 25 September 2023 announced the publication of a recent report by the Organisation for Economic Cooperation and Development (OECD) dealing with common reporting standard (CRS) circumvention schemes. Specifically, the OECD analyzed over 100 residence/citizenship by investment (RBI/CBI) schemes from CRS-committed jurisdictions and published its findings. These schemes pose a high risk as they can be used to hide assets offshore and avoid CRS reporting by granting citizenship or residence rights for local investments and flat fees.
The ATO noted that financial institutions may need to take into account the results of the OECD’s analysis of RBI/CBI schemes as part of their due diligence responsibilities. The OECD has issued practical guidance that financial institutions need to incorporate into their CRS due diligence procedures. Specifically, when uncertainty arises about the tax residency of a CBI/RBI program user, the OECD has suggested additional inquiries that financial institutions can pose to the account holder.
Read an October 2023 report [PDF 154 KB] prepared by the KPMG member firm in Australia
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.