AS per OECD's CRS Disclosure data, a number of advisers and service providers continue to be actively marketing schemes designed to circumvent the CRS reporting requirements.

In light of these ongoing challenges, G7 Finance Ministers, in the Bari Declaration issued on 13 May 2017, called on the OECD to start "discussing possible ways to address arrangements designed to circumvent reporting under the Common Reporting Standard or aimed at providing beneficial owners with the shelter of non-transparent structures." The Declaration states that these discussions should include consideration of "model mandatory disclosure rules inspired by the approach taken for avoidance arrangements outlined within the BEPS Action 12 Report."

In this regard the OECD yesterday released a consultation document seeking stakeholder input on such model mandatory disclosure rules. The model rules are intended to target promoters and service providers with a material involvement in the design, marketing or implementation of CRS avoidance arrangements or offshore structures. The proposed rules would require such intermediaries to disclose information on the scheme to their national tax authority. The rules contemplate that information on those schemes (including the identity of any user or beneficial owner) would then be made available to other tax authorities in accordance with the requirements of the applicable information exchange agreement.

Public input is sought on all aspects of these model rules. Submissions on this document will be taken into account in preparing the report that will to be sent to the G7 Finance Ministers under the Canadian Presidency.

Interested parties are invited to send their comments on this consultation draft by 15 January 2018 at the latest by email to MandatoryDisclosure@oecd.org in Word format. They should be addressed to the International Co-operation and Tax Administration Division, OECD/CTPA.