The CRS (Common Reporting Standard) is an agreement created by the OECD (Organization for Economic Cooperation and Development) that facilitates the exchange of financial account information between participating countries. Canada, along with over 100 other countries, has agreed to comply with CRS, to reduce tax fraud and tax evasion on a global scale.
Canada incorporated CRS into our Income Tax Act on December 15, 2016. As a reporting Canadian financial institution, Vancity complies with all CRS requirements, as outlined by the Government of Canada.
How it works.
All Canadian financial institutions are required to identify clients with tax residency outside of Canada and report these clients and their account information to the Canada Revenue Agency (CRA). Similarly, financial institutions around the world report the tax residency status of their clients to their own country’s governing tax body, so these agencies can share relevant information with each other to help maintain the integrity of their federal tax systems by making it more difficult to conceal investments through foreign financial institutions.
What will change.
As of July 1, 2017, Vancity was required to ask our members (both retail and business banking – also known as “entity” – accounts) to self-certify tax residency during the account opening process, and when making changes to personal information. In compliance with federal regulations, Vancity discloses this information to CRA so it can be shared with relevant countries. Vancity does not directly report information to foreign tax authorities.
FAQs.
Ensuring member privacy is a top priority for us. As a Canadian financial institution, we comply with applicable Canadian laws and regulations while maintaining our members’ privacy. If you have a privacy concern or complaint, please call 604-877-8479 to speak with the Privacy Office.
For more information on CRS, including FAQs and resources, please visit Canada Revenue Agency’s enhanced financial account information reporting page.
If you are a United States reportable person (a United States citizen or United States tax resident), the Foreign Account Tax Compliance Act (FATCA) may have an impact on you.
How long has CRS been in effect?
CRS was developed in response to a G20 request and approved by the Organization for Economic Co-Operation and Development (OECD) on July 15, 2014.
Canada, along with over 100 other countries, has agreed to comply with CRS, and incorporated CRS into our Income Tax Act on December 15, 2016.
July 1, 2017 was the start date, pledged by the Department of Finance, for all Canadian financial institutions to have procedures in place that identify and report accounts held by non-residents to the Canada Revenue Agency (CRA).
What does this mean to me, a Vancity member?
Since July 1, 2017, Vancity is required to ask members to self-certify their tax residency during the account opening process, and when making changes to your personal information.
In compliance with federal regulations, Vancity will disclose this information to CRA so it can be shared with relevant countries. Vancity will not directly report information to foreign tax authorities.
What type of information is reported to the CRA?
If an account is reportable, Vancity is required by law to report the following information to the CRA:
- identifying information for the account holder (name and address)
- taxpayer identification numbers
- date of birth
- country (or countries) of tax residence
- account number
- account balance or value at end of the calendar year
- certain amounts paid or credited to the account
Will I know whether my account information has been reported to CRA?
Canadian financial institutions are not required to notify their account holders automatically when reporting to the CRA in connection with the Common Reporting Standard. However, Vancity will, upon request from members, inform account holders whether their personal information has been reported.
How do I find out more about CRS?
For more information on CRS, please visit Canada Revenue Agency’s enhanced financial account information reporting page.
