What is the purpose of CRS?

The purpose of CRS is to set a new, international standard for the automatic exchange of financial account information between jurisdictions to reduce global tax evasion and improve tax compliance.

CRS requires all Canadian financial institutions to report on financial accounts held by individuals who hold tax residency status in jurisdictions outside of Canada and the United States, and by entities (or certain entities controlled by reportable clients) to the Canada Revenue Agency (CRA). Similarly, financial institutions around the world will report the tax residency status of their clients to their own country’s governing tax body, so these agencies can share information with each other.