Common Reporting Standard Fact Guide

Background to CRS

In order to combat tax evasion and improve tax compliance, governments around the world have committed to automatic exchange of financial account information under the Organisation for Economic Cooperation and Development (OECD) Common Reporting Standard (‘CRS’). The CRS has been designed to provide maximum consistency with US FATCA (Foreign Account Tax Compliance Act) and runs alongside FATCA.

Under the CRS, Financial Institutions (‘FIs’) are required to undertake due diligence of their customer base and report on financial accounts held by persons, including individuals and entities, that have been identified as tax resident in a CRS Reportable Jurisdiction.

Over 100 jurisdictions have committed to the CRS so far, including Jersey and Isle of Man who have implemented the CRS from 1 January 2016. Under the Jersey and Isle of Man Regulations that give effect to the CRS, Santander International as a Reporting FI, is required to carry out due diligence on its customer base and report, on an annual basis, financial accounts held by CRS Reportable Jurisdiction Persons.

Who is affected?

Whether you are an individual customer or have a business relationship through an entity with Santander International, the CRS is likely to affect you. The impact will depend on a number of factors, including:

• the CRS classification of the account holder

and importantly,

• where the actual holder of the account is resident for tax purposes

Self-certification forms

All Santander International customers, both individual and business customers, should have received and completed a self-certification form in which they would have indicated their residence(s) for tax purposes. In addition, entities would also be required to indicate their CRS classification status on the self-certification form and, in certain cases, provide details with respect to the Controlling Persons of the entity. The self-certification forms are key for Santander International to identify where you are tax resident and thus determine whether you are a Reportable Person or Non‑Reportable Person under the CRS.

Santander International are required by the Jersey or Isle of Man Regulations to review the reasonableness of the completed self-certification forms against the information held on file and, if any inconsistencies are identified, request further explanation and evidence from you. In certain circumstances, Santander International may request a new self-certification form to be completed.

What information is reported and exchanged?

The information to be reported to the Jersey or Isle of Man Taxes Office and onward to the Competent Tax Authority of the CRS Reportable Jurisdiction will depend on what type of account or product is held with Santander International.

Typically, for a deposit account, the following information will be reported: Name, Address (current residence address or correspondence address), Jurisdiction(s) of tax residence, Tax identification number(s) (where applicable), Date of birth, Account number (or functional equivalent), Name of Reporting FI (i.e. Santander International), Year-end account balance and Total gross amount of interest paid or credited to the account in the reporting year.

Residency for CRS purposes and Tax Identification Numbers (‘TINs’)

The criteria for tax residence vary considerably from jurisdiction to jurisdiction and also depend on whether you are an individual or an entity. A common test for individuals is physical presence in a jurisdiction in a tax year. However, some jurisdictions also consider other matters such as ownership of property and available accommodation to establish tax residence in relation to individuals. For companies, jurisdictions tend to determine tax residence based on place of incorporation or location of management and control. In certain cases, both individuals and entities may be resident in more than one jurisdiction in which case your information will be exchanged with all the jurisdictions in which you or your business is resident.

It is important to note that a person may still be considered tax resident in a jurisdiction even if they do not incur a tax liability in that jurisdiction. Conversely, a person may have a tax liability and a TIN in a jurisdiction in which they are non-resident with respect to income taxed at source (e.g. rental income earned by a non-resident); this would not mean that his details would be exchanged with the jurisdiction in which he has a liability.

If you are unsure about your tax residence position, please refer to the jurisdiction-specific guidance provided by the OECD http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/ for further guidance or consult your tax adviser. Please note that Santander International cannot advise on customer-specific tax matters.

Similarly, information in relation to related TINs for jurisdiction(s) of tax residence can be obtained on the OECD website http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/

Overview of Participating Jurisdictions

Jersey

Under the Jersey Regulations, the following jurisdictions have been recognised as participating jurisdictions with which Jersey will exchange information under the CRS (correct as at November 2018):

• Schedule 2 Jurisdictions
  (jurisdictions with which Jersey will exchange information – from 30 June 2017)
  
  Anguilla, Argentina, Belgium, Bermuda, British Virgin Islands, Bulgaria, Cayman Islands, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Hungary, India, Ireland, Isle of Man, Italy, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Turks & Caicos Islands and the United Kingdom.
• Schedule 3 Jurisdictions
  (additional jurisdictions with which Jersey will exchange information – from 30 June 2018)
  
  Andorra, Antigua and Barbuda, Aruba, Australia, Austria, The Bahamas, Bahrain, Barbados, Belize, Brazil, Brunei Darussalam, Canada, Chile, China (People’s Republic of), Cook Islands, Costa Rica, Curaçao, Dominica, Ghana, Grenada, Hong Kong China, Iceland, Indonesia, Israel, Japan, Kuwait, Lebanon, Macau China, Malaysia, Marshall Islands, Mauritius, Monaco, Nauru, New Zealand, Nuie, Pakistan, Panama, Qatar, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Saudi Arabia, Singapore, Sint Maarten, Switzerland, Trinidad and Tobago, Turkey, United Arab Emirates, Uruguay and Vanuatu.

The above are jurisdictions which the Jersey Taxes Office requires information under local law in order to facilitate exchange of information. This list is subject to change.

Isle of Man

Under the Isle of Man Regulations, the following jurisdictions have been recognised as participating jurisdictions with which Isle of Man will exchange information under the CRS:

• ‘Early Adopters’ Participating Jurisdictions
  (jurisdictions with which Isle of Man will exchange information – correct as at November 2018)
  
  Anguilla, Argentina, Barbados, Belgium, Bulgaria, Colombia, Croatia, Curaçao, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Hungary, Iceland, India, Ireland, Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Netherlands, Niue, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, Sweden and the United Kingdom.
• ‘Fast Followers’ Participating Jurisdictions
  (additional jurisdictions with which Isle of Man will exchange information – correct as at November 2018)
  
  Andorra, Antigua and Barbuda, Aruba, Australia, Austria, Azerbaijan, Belize, Brazil, Brunei Darussalam, Canada, Chile, China (People’s Republic of), Cook Islands, Costa Rica, Dominica, Ghana, Grenada, Hong Kong China, Indonesia, Israel, Japan, Lebanon, Macau China, Malaysia, Mauritius, Monaco, New Zealand, Pakistan, Panama, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Saudi Arabia, Singapore, Sint Maarten, Switzerland, Trinidad & Tobago, Turkey, Uruguay and Vanuatu.
• Participating Jurisdictions
  (additional jurisdictions with which Isle of Man will exchange information – from 30 June 2019)
  
  The provisional list of Isle of Man Reportable Jurisdictions for 2018 is shown below, and comprises of all jurisdictions that have made a commitment to implement the CRS with first exchanges by 2019 (with the exception of the known non‑reciprocal jurisdictions): Nigeria.

The above are jurisdictions which the Isle of Man Taxes Office requires information under local law in order to facilitate exchange of information. This list is subject to change.

Santander International is the trading name of Santander Financial Services plc, Jersey Branch and Santander Financial Services plc, Isle of Man Branch. 

Santander Financial Services plc is incorporated in England and Wales with number 2338548 and its registered office is 2 Triton Square, Regent’s Place, London NW1 3AN, United Kingdom. Santander Financial Services plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Santander Financial Services plc’s Financial Services Register number is 146003. You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register. Santander Financial Services plc, Jersey Branch has its principal place of business at 13-15 Charing Cross, St Helier, Jersey JE2 3RP, Channel Islands and is regulated by the Jersey Financial Services Commission. Santander Financial Services plc, Isle of Man Branch has its principal place of business at 19 - 21 Prospect Hill, Douglas, Isle of Man, IM1 1ET and is regulated by the Isle of Man Financial Services Authority.  www.santanderinternational.co.uk

All accounts opened with Santander Financial Services plc, Jersey Branch have situs in Jersey and therefore are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000 or by the Isle of Man Depositors’ Compensation Scheme. Santander Financial Services plc, Jersey Branch is a participant in the Jersey Bank Depositors Compensation Scheme (the Scheme). The Scheme aims to provide protection for eligible depositors of up to £50,000. For further information about the Scheme and to understand your eligibility, please refer to www.jrdca.org.je/jdcs.  

All accounts opened with Santander Financial Services plc, Isle of Man Branch have situs in the Isle of Man and therefore eligible deposits are covered by the Isle of Man Depositors’ Compensation Scheme as set out in the Isle of Man Depositors’ Compensation Scheme Regulations 2010 and not covered by the UK Financial Services Compensation Scheme or by the Jersey Bank Depositors Compensation Scheme. Full details of the Scheme and banking groups covered are available at the Isle of Man regulator’s website, www.iomfsa.im/consumers, or on request.

Santander and the flame logo are registered trademarks. The latest audited accounts are available upon request. Calls to Santander International are recorded and may be monitored for security and training purposes.