Update_Consultation on Misuse of residence by investment schemes to circumvent CRS

On 19.02.2018, the OECD released consultation document on misuse of residence by investment schemes to circumvent the Common Reporting Standard (Standard for Automatic Exchange of Financial Account Information in Tax Matters). The document concentrates on “residence by investment” (RBI) or “citizenship by investment” (CBI) schemes, which permit foreign individuals to obtain citizenship or temporary or permanent residence rights in the relevant jurisdiction in exchange for local investments or against a flat fee.

In this respect the document:

(1) assesses how these schemes are used in an attempt to circumvent the CRS;

(2) identifies the types of schemes that present a high risk of abuse;

(3) reminds stakeholders of the importance of correctly applying relevant CRS due diligence procedures in order to help prevent such abuse; and

(4) explains next steps the OECD will undertake to further address the issue, assisted by the requested public input.

Public input can be provided until 19.03.2018. It is sought (i) as further evidence on the misuse of CBI/RBI schemes and (ii) to identify effective ways for preventing such abuse.

Please see here the consultation document.

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