In an effort to combat cross-border tax evasion, the Organization for Economic Cooperation and Development (OECD) created the Common Reporting Standard (CRS) for over 100 participating jurisdictions to implement into local law in 2016 or 2017. CRS is being implemented in Canada effective July 1, 2017.
In accordance with CRS and in line with existing obligations under Know Your Customer (KYC) regulations, Tangerine will be collecting foreign tax residency information, including Tax Information Number (TIN), if applicable, from all new Clients and certain existing Clients, effective July 1, 2017.
Note: The information below is provided only as an overview for information purposes. It isn’t intended to serve as legal or tax advice. If you need such advice, we suggest you consult a professional advisor.
To better prevent cross-border tax evasion, the Organization for Economic Cooperation and Development (OECD) created the Common Reporting Standard (CRS) for over 100 participating jurisdictions to implement through local laws during 2016 or 2017. Financial institutions have new obligations to accommodate the automatic exchange of tax information between countries. Financial Institutions are required to:
Identify Clients with “Reportable Accounts” and get their foreign Tax Information Number (TIN).
Annually report information regarding those Clients and their Accounts and/or transactions. This information will be reported to the local tax authority, which will forward it to the applicable national tax authority.
An Account is subject to reporting if both the Account and the Account holder are reportable. Types of Tangerine Accounts that are reportable include Savings Accounts, Chequing Accounts, Investment Fund Accounts and Business Accounts.
We expect that the vast majority of our Clients won’t be reportable. We’ll be asking new Clients (and certain existing Clients) to complete a tax residency certification. This involves indicating whether the Client is required to file taxes in any countries other than Canada and providing any applicable TINs. Reportable Clients are those who certify as having foreign tax obligations and those who don’t complete their certification 90 days after being asked.
Beginning July 1, 2017, new Clients will be asked if they’re required to file taxes in any countries other than Canada. Existing Clients will be asked this question if the information we have on file indicates that reporting may be required for their Accounts. We’ll then review the information provided to determine if the Client’s Accounts are reportable. We’ll also be asking certain existing business Clients to provide tax residency certification of their controlling persons. Existing Clients will be asked this question if the information we have on file indicates that reporting may be required for their Accounts. We’ll then review the information provided to determine if the Client’s Accounts are reportable.
If you’re asked to provide tax residency certification, you’ll also be considered reportable if you don’t provide the information within 90 days.
Tax residency certifications will be required from all new Clients and certain existing Clients.
Clients will be asked to provide the following information:
Name and residence address
Jurisdiction(s) of residence for tax purposes
Tax Information Number (TIN) issued by each jurisdiction of tax residence
Date of birth
Business Clients will be asked to provide the following information related to the entity:
Jurisdiction(s) of residence for tax purposes
TIN issued by each jurisdiction of tax residence
Name(s) of controlling person(s) for certain entity types
TIN issued by each jurisdiction of tax residence for controlling persons for certain entity types
Your information will be reported to the Canada Revenue Agency and will include the following:
Name and address
Tax Information Number (TIN)
Account earnings over the year including dividends, interest, gross proceeds and other income
We can only provide general information about CRS (such as the information in this section of our website). We aren’t able to provide you with tax advice and would encourage you to go to oecd.org for further information. You may also want to speak with a professional tax advisor.
CRS takes effect in Canada on July 1, 2017.
Financial institutions in Canada are all required to comply with CRS.
We’re required to comply with CRS requirements. We also have a policy of strict adherence to privacy legislation and protection of Client data.
Much like other information about yourself that you’re required to provide today (e.g. full name, identification, address, occupation, date of birth), CRS introduces the new obligation of also providing your tax residency information and associated TIN. If we don’t get this information from you for any reason, you may then be deemed reportable to the local tax authorities.
CRS applies to other types of accounts besides personal bank accounts. It also appies to certain business accounts and investment or brokerage accounts. However, reporting is not required for certain types of accounts. For example, RSP accounts are exempt.
We assess each Account holder individually. If an Account holder is found to be reportable, then that individual is reported as if he/she held the entire Account in their name only.
Documentation provided for U.S. FATCA may not be sufficient for the purpose of CRS. When CRS-related documentation is required, we’ll let you know what’s needed.
Detailed information on CRS is available here.
Although all due care was taken in the creation of these answers, Tangerine won’t accept any liability as a result of any error or inaccuracy. If you think that CRS may apply to you, you may want to seek appropriate tax or legal counsel.