Private Client & Offshore Services, International updates

Trust protectors: reportable under CRS, but not under FATCA
  • International
  • October 20 2016

The Foreign Account Tax Compliance Act does not require reporting of US protectors who are not otherwise beneficiaries or settlors of the trust. In contrast, under the Common Reporting Standard (CRS) Implementation Handbook, protectors will now be reported to their country of tax residence. It is unfortunate that the CRS requires disclosure of trust protectors who contributed no money to the trust, have no beneficial interest in the trust and have no effective control over the trust.

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