The Department for International Tax Cooperation (DITC) has issued a reminder to all financial institutions (FI) that the date of birth of individuals, whether account holders and/or controlling persons, must be given on submitted CRS XML Returns.

The DITC made the announcement after it reviewed the submitted data for the 2022 reporting period. It determined that approximately 10 percent of financial institutions failed to report a date of birth on CRS XML Returns.

The DITC said it wanted to remind the industry that the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) Regulations (2021 Revision) require the date of birth to be reported for all individuals who are Reportable Persons, i.e. both for Account Holders and Controlling Persons.

The DITC said that it is aware that, within the CRS XML schema, the DoB element is labelled (Optional) Mandatory. “For the avoidance of doubt, where an FI holds this information within its records, it is required to be included within the CRS XML Return,” it stated.

It added: “It is expected that an FI will hold DoB information in its records, irrespective of whether the account is a Pre-existing Account under the CRS, due to its AML obligations (e.g. the requirement to collect a valid passport that contains a DoB). Therefore, the DITC will review submitted returns as part of its annual compliance and enforcement activities, with a focus on FIs that fail to report a DoB.”

It added that FIs must ensure the correct DoB is provided for all individual Account Holders and Controlling Persons in CRS XML Returns for the 2023 Reporting Period (the deadline to report is 31 July 2024).

“Failure to include the DoB in a CRS XML Return may result in compliance and enforcement action being taken against the FI.”

 

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