Common Reporting Standard Glossary
Below are some quick definitions of some common tax compliance jargon.
Reportable person or Reportable entity
A CRS Reportable Person is any individual who holds a financial account with ICICI Bank UK Plc and who has a tax residency in a participating jurisdiction, other than the UK. As well as personal account holders, certain entities resident in a participating country or those which have individual controlling persons who are resident for tax purposes in participating countries may be reportable.
For tax purposes a ‘jurisdiction’ is defined as an area subject to its own distinct tax regulations such as a US state, city, county or country.
This is a jurisdiction which has an agreement in place to exchange information in accordance with the OECD CRS.
Reportable for CRS purposes
Each jurisdiction has its own rules for defining tax residence and jurisdictions have provided information on how to determine whether a person or an entity is tax resident in the jurisdiction. Generally, an individual or an entity is resident for tax purposes in a jurisdiction, if, under the laws of the jurisdiction, it should be paying taxes there. When we determine a customer who is holding a financial account, is resident for tax purposes in a participating jurisdiction and may be reportable for CRS, we will pass the relevant information to the local tax authority. This reporting of the customer and their information means they are ‘reportable for tax purposes’ to the local authority.
If a customer opens a new account, invests in a new product, or has a change in circumstances which may make them tax resident in a participating jurisdiction, we may write to them asking them to complete a self- certification form confirm their place of residence for tax purposes. We may also write to some pre-existing customers who have financial accounts with us where this information has not previously been captured. This is called ‘self-certification’.
Controlling persons are the Natural Persons who have ultimate control over an entity. In the case of a trust, the Controlling Person(s) are the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, or any other natural person(s) exercising ultimate effective control over the trust (including through a chain of control or ownership).
For the CRS this is defined as a legal person or a legal arrangement such as a corporation, organisation, partnership, trust or foundation. An entity will therefore be any customer that holds a business account, product or service.
Under CRS, sole traders are not treated as entities but as individuals.
The term “financial account” means an account maintained by a financial institution, and includes a Depository Account, a Custodial Account, certain equity or debt interest in investment entities and certain Cash Value Insurance Contract and Annuity Contract issued or maintained by a financial institution. A financial account is not an excluded account as per the CRS.