2017 might not be so great for some expatriates in UAE. Apart from the fact that UAE is working on putting up a tax structure soon, the bigger news is the implementation of a new global transparency policy that seeks to fight cross-border tax evasion, plug yawning loopholes in the system and put an end to banking secrecy in tax matters.
The Common Reporting Standard (CRS), developed by the Organisation for Economic Co-operation and Development (OECD), provides for jurisdictions to obtain information from their financial institutions and to automatically exchange that information on an annual basis with other partner jurisdictions. India and UAE are among more than 50 countries who have agreed to CRS, which means tax information can be shared by banks in both countries.
This is a very important step in a world which loses billions every year due to tax evasion and offshore tax abuse. Countries around the world have been looking for ways to track down and monitor tax-delinquent residents overseas, with CRS being a distant and delayed relative of US’s FATCA. Both FATCA and CRS aims to foster an exchange of information between countries regarding expatriate or individual bank accounts, interest, dividends or incomes earned outside their home country.
Tax cheats have nowhere left to hide
The above was said by OECD secretary-general Angel Gurria said during the launch of CRS last year. With HSBC in UAE already sending letters to its customers asking them investment and income details of their home country, other banks will follow suit soon. One more issue that OECD needs to plug before full implementation of CRS is the issue of ‘fake residency‘.
The impact of the new regulation will depend on the type of accounts held by expats or where they live or operate as a business, among others. It doesn’t mean everyone would be affected. It will only affect who are trying to evade taxes by using their residency as a shield, while genrating taxable income in their home countries.
For most of us, single salaried individuals in a foreign country, the impact will be minimal but for the tax thieves out there….. sssssshhhh…. you better run… the taxmen are coming.
BRAZEN BANKER 
