Pakistan signs agreement to join CRS
25 July 2017
Pakistan has become the 91st signatory to the Multilateral Competent Authority Agreement (“MCAA”) to implement the Common Reporting Standard (“CRS”) as part of the global fight against tax evasion.
This provides for the automatic exchange of substantial financial account information with the other signatories in 2018 in relation to accounts held by non-residents in Pakistan. It will also provide the authorities with valuable information in relation to offshore funds held by residents even where these are held through complex corporate and trust structures.
Given that CRS is based on the transient concept of tax residency rather than citizenship, procedures will need to be far more robust than those already developed in relation to the US Foreign Account Tax Compliance Act (“FATCA”).
Kazi Abdul Muktadir
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