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Podcast: Offshore Tax with HTJ.tax
Episode: CRS vs FATCA: Open Loopholes
Description: Between 2017 and 2019, the OECD published FAQs and addendums to CRS to close loopholes—such as residence by investment, broad-based retirement plans, nil-value reporting on settlors, and the treatment of cash. FATCA, however, never addressed these loopholes. Eventually, the OECD abandoned the “whack-a-mole” approach and instead introduced Mandatory Disclosure Rules (MDR). But MDR was largely ineffective: few countries implemented it, and promoters in non-participating jurisdictions or under lawyer privilege were exempt.Example: a UK non-resident trust classified as a custodial institution with a trustee in Svalbard. It owns an investment entity company but reports nil, since the equity intere...