OECD automatic exchange of information agreement is signed up by more than 100 jurisdictions, with sole purpose to share information on financial account between held by the residents of those countries. For all these people that own such account, shall at least obtain a tax advice in regards to their exposure of these rules.

 

On the other hand, if you would like to continue to do your offshore business as usual, you should exploit on the five loopholes listed below:

 

Significant loopholes are:

Thresholds: Existing entity accounts, established before December 2015, with a balance of USD 250 000, are not required to be reviewed, identified or reported.

“Controlling persons” term: International best practice always refers to “beneficial owner”, not “controlling persons”. Not always there are controlling persons, i.e., when shareholding is atomised or is a minority stake

Lack of provisions for Foundations: These type of vehicles are not covered by specific reporting obligations

Trusts managed by individual Trustee is not considered Financial Institutions: Trustee for such Trust is not required to report on Settlors and beneficiaries

 

In addition to all of the above, there is another way which OECD reporting can be avoided. This can be done by using a company or an entity in a jurisdiction which is not part of the OECD CRS agreement. These jurisdictions are as follow:

 

  1st Year 2nd Year
Gambia  USD    899  USD 799
Liberia  USD 2,499  USD 999
Panama  USD 1,039  USD 999
Delaware  USD    799  USD 699