1. What is CRS?

   The Common Reporting Standard (CRS) is a standard to help fight against tax evasion and protect the integrity of tax systems, endorsed by the Organisation for Economic Cooperation and Development (OECD) in 2014 for implementing the Automatic Exchange of Financial Account Information (AEOI). AEOI is a system where financial institutions (FIs) transmit financial account information among those countries that have signed the AEOI agreements ("AEOI partners"). There are over 100 AEOI partners currently.

2. What assets are included in reporting under the CRS?

   Generally, only information related to financial assets is subject to reporting under CRS.

3. What is the position of UTGL on the reporting?

   Any foreign individuals or entities that are tax residents of AEOI partner jurisdictions or countries and have financial accounts with institutions in Hong Kong will be reported. As a financial institution, UTGL is required to identify and report on the financial accounts it manages or administers. This includes complying with CRS due diligence procedures to determine the account holders and controlling persons and reporting the necessary information about these reportable accounts and account holders to the IRD.

4. Will UTGL report the trust beneficiary?

   The financial institution shall report the trust’s beneficiary who is a resident of a reportable jurisdiction when the trust fund is distributed.

5. Will my digital assets be reported and disclosed?

   While cryptocurrencies are not classified as reportable assets in Hong Kong, they are subject to various regulations. We follow the rules and will adhere to any recent changes in developing CRS reporting requirements.

6. Do I have to keep updating information to UTGL?

   You will need to notify us for an update if you change your account information or if there is a change in your reportable status. Any changes to your reportable accounts must be reported within 30 days.

7. Will my personal information and assets be disclosed without protecting my privacy?

   The IRD will only exchange financial account information with AEOI partner jurisdictions with comprehensive tax agreements with Hong Kong. These agreements include measures to safeguard taxpayer privacy and ensure the confidentiality of the exchanged information.

   
   UTGL is committed to protecting the confidentiality of the Personal Data in our possession. We ensure your information is secured by a stringent code of secrecy and security. Disclosure will only occur with your written consent, in compliance with current laws or guidelines, or if mandated by a high court order.

8. Under CRS, what is the best solution to protect my privacy?

   Some strategies to help further protect your privacy include:
   
   (1) Exploring and utilizing any applicable exemptions and exclusions under CRS regime.
   (2) Consulting our qualified tax and legal advisors can help understand the CRS requirements and provide optimal privacy protection strategies.
   
   

9. What is Tax Identification Number (TIN)?

   A taxpayer identification number (sometimes called a TIN) is a unique number issued by the respective local government to an individual or entity. For example, Hong Kong will use Hong Kong Identity (HKID) numbers (for individuals)and business registration numbers (for companies) for CRS purposes.

10. Can setting up a Trust account help with CRS obligations?

    Setting up a Trust account can offer privacy benefits, but it is important to note that it doesn't automatically exempt you from CRS reporting requirements. The effectiveness of a Trust account in this context depends on various factors, including the specific structure of the Trust and the jurisdictions involved.
    
    Consulting with our qualified tax and legal advisors is crucial to understanding how a Trust account might impact your CRS obligations and to explore any potential strategies for privacy protection.

Navigating the landscape of CRS and global tax planning can be complex, but staying informed is vital to ensuring compliance and optimizing your financial strategy. UTGL is dedicated to adhering to anti-money laundering regulations and performing comprehensive due diligence on every client. With a commitment to legality and compliance, we strive to create tailored offshore company structures, family offices, and trust arrangements. Our goal is to enhance financial privacy, asset protection, inheritance planning, and tax optimization.

Contact us to schedule a consultation and explore how we can best serve your needs.