Under the newly expanded and more stringent rules, even errors made in good faith could result in an investigation. This is partly because any information shared through official CRS channels is viewed as being verified by the recipient.
There are many pieces of information the client and adviser need to ensure are correct. For example, CRS requires correct and up to date addresses and financial details for all financial interests across all relevant jurisdictions. For those with complex financial affairs across multiple asset classes, regions and countries, this can be complex, so reliable expat financial management is likely to be essential.
Furthermore, information provided should be so detailed and specific that it provides no room for ambiguity. For example, some named addresses may trigger an investigation if it is not made clear and verifiable that they are only used for holidaying or temporary stays rather than acting as a main residence.
For example, a client may own a house in Malta but reside in the Netherlands. If correspondence from the client’s Maltese bank account is sent to the Maltese address this could trigger CRS reporting of the fact and result in notification to the authorities in the Netherlands.
Such instances can provoke a chain of actions and investigations and, even if clients are exonerated, can cause considerable inconvenience and distress. As such, clients and their advisers should revise their addresses with all their wealth and asset managers, banks, brokers, insurance companies and other interested parties.
If you need more information on CRS and other wealth management issues, contact Blacktower today for expat financial advice from people who understand your situation.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Located at the Southern tip of the Iberian Peninsula, the British overseas territory of Gibraltar looks South over the confluence of the Mediterranean Sea and the Atlantic Ocean. This small but strategically important isthmus of land, is home to over 32,000 people in just 6.7 km2 (2.6 miles2) of land. As a British crown dependency, the laws and language are those of the United Kingdom, but Spanish is also widely spoken along with the hybridised form of the two known as Llanito. Due to its location and close links with the UK, Gibraltar has long been a favoured destination by British expats looking for sunnier climes and an attractive tax regime. Although it’s not quite as well-known as some other offshore territories such as Monaco and the Cayman Islands, Gibraltar tax rates make it a very attractive choice for anyone looking to relocate within easy striking distance of the UK and Western Europe.
A SIPP transfer may offer many benefits, including greater investment flexibility and exemption from capital gains and income tax; however, a SIPP is not suitable for every retirement investor and independent expat financial planning advice should always be sought before committing to a SIPP pension transfer.