FATCA vs. GATCA (OECD CRS) New Int'l Rule for Money

Happy New Year! (To the year of the Rooster 2017),

Not many members or the media are mentioning about the new int'l law/rule which starts in 2017 & 2018.
(Over 50-55 countries in 2017 and another 30 or so in 2018).

To be brief, CRS is the Common Reporting Standard and it is also referred to as GATCA (Global Account Tax Compliance Act).
It is considered a “Global Version” of FATCA designed to further crack down on offshore tax evasion and non-reporting of financial accounts.

There are some differences such as regarding citizenship(FATCA) vs. residency(CRS) or the amount.
You will need to do some research for your own country if you think you can be applied. For example, if you have a FX or other
trading accounts in other countries, you will be applied.

These are some excerpts from the wiki.

The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law to enforce the reqiuirement for United States persons including those living outside the U.S. to file yearly reports on their non-U.S. financial accounts to the Financial Crimes Enforcement Network (FINCEN). It requires all non-U.S. (foreign) financial institutions (FFIs) to search their records for indicia indicating U.S. person-status and to report the assets and identities of such persons to the U.S. Department of the Treasury.[1] The FATCA was the revenue-raising portion of the 2010 domestic jobs stimulus bill, the Hiring Incentives to Restore Employment (HIRE) Act,[2][3] and was enacted as Subtitle A (sections 501 through 541) of Title V of that law.

Common Reporting Standard
The Common Reporting Standard (CRS), formally referred to as the Standard for Automatic Exchange of Financial Account Information, is an information standard for the automatic exchange of information (AEoI), developed in the context of the Organisation for Economic Co-operation and Development (OECD). The legal basis for exchange of data is the Convention on Mutual Administrative Assistance in Tax Matters and the idea is based on the USA Foreign Account Tax Compliance Act (FATCA) implementation agreements.

And some readings to do:

Best Pip Wishes!
FxCross

Hello FXCross,

I asked about 10 FOREX brokers in email if they had to report to different TAX authorities about their clients FOREX account balance. They all replied that they were not reporting to any TAX authorities.

By reading about CRS I understand that only investment brokers, who actually invest their clients funds, have to report to TAX authorities.

Do you agree with this?


Thanks,

Herring

If i can help, i also asked my FX broker (based in UK) if they will send any type of information and they said no.

Now, the risk is you can get an answer from a helpdesk technician who is not an expert in this area. But i found this article , and it seems that brokers who deal with derivatives do not need to report "yet"

https://financefeeds.com/is-your-fx-...ailed-insight/

I continue to search to really get a clear answer.

This is a very important thread and if other people have useful info, please share it !

any update to this? does broker still not needed to report to its country tax authorities (which in turn report to their client tax authorities)
I don't think I can be convinced by asking any broker call center

I believe the USA didn't sign the CRS and so does not report, but I'm not entirely sure how that works. Greedy government bastards want it all! Tax = theft, IMO. If you happen to get your account wiped out, you won't get any tax deductions unless you have another source of income to offset it against and again, I don't know what it means if your trading is your only source of income.