OECD CRS

The Organization for Economic Cooperation and Development (OECD) developed the Common Reporting Standard (CRS) for over 100 participating countries including Canada. It provides a new international standard for the automated exchange of financial account information between tax jurisdictions to help detect cross-border tax evasion.

This is a new tool to help combat tax evasion. The Organization for Economic Cooperation and Development (OECD) developed the Common Reporting Standard (CRS) for over 100 participating countries including Canada. It provides a new international standard for the automated exchange of financial account information between tax jurisdictions to help detect cross-border tax evasion.

CRS requires financial institutions like Zag Bank to identify clients who are not tax residents of Canada or the United States (U.S.) and provide their account information to the Canada Revenue Agency (CRA).

Zag Bank complies with CRS.

For a list of the jurisdictions that have committed to implement the CRS, visit the Organization for Economic Cooperation and Development website at: https://www.oecd.org/tax/transparency/AEOI-commitments.pdf .

It took effect on July 1, 2017.

CRS applies to accounts held by residents of countries outside Canada and the U.S. For all identified accounts, required information is provided to the Canada Revenue Agency.

Most likely, the CRS regulations will not impact the majority of Zag Bank clients.  

In cases where we identify that an account that might be affected by these requirements (i.e., there is an indication that you or someone with an indirect interest in the account might be a resident of a country outside of Canada or the U.S.), we may ask you for additional information or request that you fill in a Self-Certification Form to confirm your tax status.

This form allows you to declare that you are not a Canadian or U.S. resident for tax purposes under CRS . When you apply to open an account with Zag Bank and you answer “Yes” to the question “Are you a tax resident of a jurisdiction other than Canada or the U.S.?”, the Self-Certification form is automatically sent to you. The form may also be sent to you should your tax status change over time.

If you wish to change your tax status, simply email us at: foreigntax@zagbank.ca.

For any questions about your specific situation, you should speak with your tax advisor. For answers to more general questions, simply visit Canada Revenue Agency online at http://www.cra-arc.gc.ca/gncy/bdgt/2016/qa08-eng.html.

If either you or your co-account holder is a resident of a country outside of Canada or the U.S., then the entire account is reportable under CRS.

Rest assured, your privacy is of the utmost importance to both Zag Bank and the Canada Revenue Agency. The CRS requires financial data to be exchanged under the strict confidentiality provision of the Convention on Mutual Administrative Assistance in Tax Matters or relevant tax treaty in order to keep information safe.

The following types of Zag accounts are not included under CRS:

  • Zag RRSP Savings accounts
  • Zag Tax-Free Savings accounts
  • Zag RRSP GIC accounts
  • Zag Tax-Free GIC accounts

FATCA applies only to clients who declare residency in the United States of America. CRS applies to any other type of non-Canadian resident who is a client.