The CARF has been developed by the Organisation for Economic Co-operation and Development (OECD) and is part of a set of standards known as the International Standards for Automatic Exchange of Information in Tax Matters. Previously known as the Standard for Automatic Exchange of Financial Account Information in Tax Matters, these underwent a comprehensive review and on June 8th 2023 the revised standard was published along with the introduction of the CARF.
Similar to the Common Reporting Standard (CRS), the CARF consists of Model rules and commentary explaining the scope of the assets to be covered, the entities and individuals subject to data collection and reporting requirements.
Whilst the draft of the CARF had been published before, the release in June now includes the same style Multilateral Competent Authority Agreements (MCAA) as per the CRS. The MCAA contains the legal mechanism for participating jurisdictions to exchange reportable information with other participating jurisdictions.
The OECD is currently working on an implementation guidance which will help enable consistent national and international application of the CARF. Each jurisdiction will have its own implementation timeline depending on when it signs the new MCAA.
Midshore are already familiar with Automatic Exchange of Information reporting and currently assist its clients with CRS reporting as well as FATCA reporting. Midshore’s team are familiar with the reporting requirements for the CARF and are already talking to its clients in respect of their responsibilities.
We are able to:
If you are unsure of your responsibilities, or interested in any of our services in this area, please contact us.