UK co-ownership trust is jointly held property where trustees and beneficiaries are the same persons.
Core principles of when to report for Common Reporting Standard
Participating Jurisdiction Financial Institutions, such as Depositary institutions, Custodial institutions, Investment Entities, and Specified Insurers report the Financial Accounts of Account Holders. Obviously, no reporting takes place if the Account is not a Financial Account, such a broad-based pension, etc.
There are two major exclusions when no reporting takes place for CRS:
• If the Account Holder is resident in a non-Reportable Jurisdiction1
• else, if the Account Holder is resident in a Reportable Jurisdiction, then there is no reporting if the Account Holder is a Non-Reportable Person, such as a Financial Institution2 or Government entity, International Organization, Regularly traded Corporation, or Central bank.
• There is one exception to these two exclusions, and that is when the Account Holder is a managed Investment Entity Financial Institution located in a non-participating jurisdiction. Then the Reporting Financial institution must look through the Account Holder to its Controlling Persons, irrespective of the status of the chain of holding entities and report if they are resident in a Reportable Jurisdiction.
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ii). Non-Reportable Jurisdiction:
Is one where a multi or bilateral Competent Authority Agreement (CAA) does not exist between:
• the Reporting Financial Institution's jurisdiction, and
• the Account Holder's jurisdiction.
The OECD CRS-related FAQ confirms a Reportable Jurisdiction Person would therefore not include an Account Holder who is resident in the same jurisdiction as the Reporting Financial Institution.
This is because the jurisdiction has no CAA with itself.
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iii). Non-Reportable Person
A Non-Reportable Person includes a Financial Institution which is either a Depository Institution, a Custodial Institution, a Specified Insurer, or a managed Investment Entity. The co-ownership express trust is a managed Investment Entity:
i. Depositary Institution: Accepts deposits. The co-ownership trust is not a Depositary Institution.
ii. Custodial Institution: Earn a substantial portion of its business from custody-like fees. The co-ownership trust is not a Custodial Institution.
iii. Specified Insurer: The co-ownership trust is not a Specified Insurer.
iv. Manager Investment Entity:
A. Primarily conducts as a business investing, administering, managing financial assets on behalf other persons. A corporate trustee company likely a manager Investment Entity type A.
B. Primarily conducts as a business trading in money market instruments, foreign exchange, index instruments, transferable securities, and futures. A wealth manager likely a manager Investment Entity type B.
C. Primarily conducts as a business individual and collective portfolio management. A collective Investment Vehicle is likely a manager Investment Entity type C.
The co-ownership trust is not a manager Investment Entity.
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