| Abstract [eng] |
This master thesis “Differences between Common Reporting Standard and Foreign Account Tax Compliance Act” provides analysis of newly introduced instruments regarding automatic exchange of information related to financial accounts, both in Lithuania and on a global scale. This master thesis is combined into three main parts: first part describes the CRS, the second – FATCA and the third contains distinction between CRS and FATCA. In order to properly explain the CRS and FATCA, the first two parts deliver descriptions of main characteristics of CRS and FATCA, as well as their means of implementation, the benefits which the countries receive while performing exchange of information, cases when avoidance to notify regarding foreign financial accounts of tax payers, also measures, subject to policies by OECD and IRS, which could result in these instruments being improved. Although OECD has created the financial trade model under FATCA Model 1 IGA, it made several adjustments for the purpose of applying it to international multilateral exchange of information on financial accounts which provides essential differences between CRS and FATCA which are laid out in part three of the master thesis. Lawyers, financial institutions as well as tax payers have to be familiar with these differences for proper trade of information within the grounds of these two instruments. This master thesis should be considered extremely authentic as it is the first thesis in Lithuanian language where CRS and FATCA are described in their essence, also in depth analysis of their differences, implementation, benefits and other key aspects are performed and summarised. |
