HM Revenue & Customs issued guidance relating to the automatic exchange of information by charities under the common reporting standard (CRS).
According to the HMRC guidance, a charity that is an “investment entity” is deemed to be a financial institution, and must report any relevant payments it makes to tax residents outside the UK. These charities are required to report information on financial accounts under:
The CDOTs agreements were effective 1 January 2015, with first reporting due by 31 May 2016. The CRS came into effect from 1 January 2016, with first reporting due by 31 May 2017. Between 1 January 2016 and 2017, the CRS will gradually replace the CDOTs agreements.
Accordingly, a charity must collect data on financial accounts for the calendar year to 31 December 2016 and report it to HMRC by 31 May 2017.
Read a June 2016 report [PDF 71 KB] prepared by the KPMG member firm in the UK
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