정기 금융정보교환을 위한 조세조약 이행규정 고찰

Abstract

Countries around the world have been engaging in automatic exchange of information totackle tax evasion. The same goal became the basis of the enactment of the Foreign AccountTax Compliance Act (FATCA) by the United States Congress. In order to establish a commonapproach to counter tax evasion among different countries, the Organization of EconomicCooperation and Development (OECD) released the Standard for Automatic Exchange ofFinancial Account Information in Tax Matters which consists of the Competent AuthorityAgreement (CAA) and the Common Reporting Standard (CRS). Specifically, the automatic exchange of information is the exchange of financial accountinformation between Tax Authorities in relevant countries. The law requires this information tobe collected by financial institutions around the world for reporting to Tax Authorities. Automatic exchange of Information is made up of two information sharing frameworks: TheForeign Account Tax Compliance Act (FATCA) and The Common Reporting Standard (CRS). Under the automatic exchange of information, all financial institutions must identify accountsheld by customers who are foreign tax residents or entities connected to foreign tax residents. Financial institutions must report these to the relevant Tax Authority who will thenautomatically exchange the account information with the relevant foreign Tax Authorities. Korean government has enacted domestic laws to require financial institutions to collect andreport this information and has entered into international agreements to exchange theinformation with other governments. This paper analyzed the FATCA and CRS rules overalland proposed solutions for the legal and practical issues. This paper contributes to the existingliterature on the automatic exchange of information by considering two information sharing frameworks.