The CRA has released updated guidance on the common reporting standard (CRS) for financial institutions.
This recent release clarifies some aspects of the CRS and contains changes to certain CRS definitions and requirements. The CRA also released the XML schema that financial institutions can use to electronically report information related to CRS. The notice explains which tags in the schema are mandatory and which are optional.
Under Canada's CRS rules, reporting financial institutions must identify accounts that are held by taxpayers who are residents of jurisdictions outside of Canada and the U.S. (including persons with dual or multiple tax residency) and report specific information relating to these accounts directly to the CRA each year. This information includes account balances, interest, dividends received and proceeds from the sale of financial assets. Under these rules, individuals and certain entities (including corporations, trusts, partnerships, joint ventures and other Canadian resident entities that are not considered Canadian financial institutions) are generally required to self-certify to any reporting financial institution holding one of their accounts.
A reporting financial institution must file a prescribed information return with the CRA by May 1 of each year, starting May 1, 2018. This return must provide information relating to reportable accounts that it maintained at any time during the preceding calendar year and after June 30, 2017.
For more details, see KPMG's "Canada: Updated CRS guidance; XML schema for electronic reporting" or contact your KPMG adviser.
Information is current to August 29, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500