Tax for CMS licence holders/RFMC

    Where a person has two residences or has moved, does the Reporting Financial Institution have to report to all jurisdictions?

    In the case of a Reportable person that is identified (pursuant to the due diligence procedures) as having more than one jurisdiction of residence for tax purposes, the jurisdictions of residence to be reported are all jurisdictions of residence identified by the Reporting Financial Institution for the Reportable Person with respect to the relevant period (para. 6 of the Commentary to Section I of the Commentaries to the CRS).

    Where a person has two residence addresses, a self-certification can be sought or the account can be reported to all Reportable Jurisdictions where there is a residence address (Sections II-VII, Q3 CRS-related FAQs). A Financial Institution may rely on the self-certification of the customer. It is not required to perform a legal analysis to determine the reasonableness of self-certification. It may rely on a self-certification made by the customer unless it knows or has reason to know that the self-certification is incorrect or unreliable (the “reasonableness” test), which will be based on the information obtained in connection with the opening and maintenance of the account, including any documentation obtained pursuant to AML/KYC procedures.