Organizational principles of automatic exchange of information in tax matters according to CRS standard

Abstract

Introduction. The urgency of countering the base erosion and profit shifting is only increasing. Problem Statement. Scientific justification for the introduction of automatic exchange of financial account information in tax matters according to the CRS standard. Purpose. The article is devoted to the analysis of organizational bases of automatic exchange of financial account information in tax matters according to the CRS standard and development of recommendations on introduction of such exchange in Ukraine. Materials and Methods. In the course of the research, the following methods were used: abstract-logical, systematization, dialectical and formal logic, expert evaluations. Results. The requirements of the OECD for the implementation of the following steps are analyzed: 1) adaptation of national legislation to the requirements of the CRS standard (amendments to legislation, adoption of bylaws); 2) selection of partner countries and signing of the Multilateral competent authority agreement on automatic exchange of financial account information, deposit of notifications and reservations with the OECD Secretariat; 3) ensuring compliance with the requirements of confidentiality and protection of personal data; 4) automation and technical support of information collection and exchange processes: coordination of the format of data collection and transmission, installation of non-necessary software. The peculiarities of presenting information for reporting according to the CRS standard are revealed, the experience of one of the financial institutions of Poland on self-certification of CRS of its clients is given. Conclusions. It is concluded that the process of establishing CRS reporting and automatic exchange of relevant information is complex, requires increased attention to many details and considerable time and financial resources of both the state and financial institutions and other businesses. The latter cannot be carried out during a period of significant economic and financial upheavals, such as the full-scale invasion of the Russian Federation into Ukraine and further massive hostilities on a large territory of our state with significant destruction. The process of introducing the exchange of information according to the CRS standard should be continued after the end of the war (with a possible significant delay in the calendar schedule of implementation of planned activities).