Common Reporting Standard (CRS) Guide For Reporting Financial Insitutions FAQ- (EOI CRS FAQ)

The Common Reporting Standard (CRS) is an international framework developed by the OECD that requires financial institutions to collect and report information about financial accounts held by non-tax residents. This information is then exchanged between countries to help prevent tax evasion and improve tax compliance.

The Ghana Revenue Authority (GRA) is legally empowered to collect financial account information under the following laws:

– Act 967: The Standard for Automatic Exchange of Financial Account Information Act, 2018 establishes the framework for financial institutions to report specified account information to the GRA. It outlines due diligence procedures and reporting obligations in line with the Common Reporting Standard (CRS).

– Act 1099: The Amendment Act of 2023 strengthens Act 967 by introducing enhanced due diligence requirements, anti-avoidance provisions, and penalties for non-compliance. It also clarifies the obligations of reporting financial institutions and proscribes circumvention practices.

Together, these Acts ensure that Ghana complies with international standards for tax transparency and exchange of financial account information.

The CRS was developed by the OECD and endorsed by the G20 in 2014 as part of global efforts to tackle offshore tax evasion. Over 100 jurisdictions, including Ghana, have committed to automatically exchanging financial account information under CRS. This makes it harder for individuals and entities to hide assets abroad and strengthens international tax cooperation.

• CRS is a global standard developed by the OECD and adopted by more than 100 countries, including Ghana.FATCA (Foreign Account Tax Compliance Act) is a United States law that requires foreign financial institutions to report information about accounts held by U.S. taxpayers.The key difference is that FATCA is unilateral (focused on the U.S.), while CRS is multilateral (covering many countries).

Financial institutions must report:

Identifying information (name, address, date of birth, Taxpayer Identification Number (TIN), country of tax residence).
Account information (account number, financial institution details, account balance or value).
Financial activity (interest, dividends, income from certain insurance products, and proceeds from the sale of financial assets).

Country of residence usually refers to where you live. Tax residence is determined by the rules of each country and refers to where you are legally required to pay taxes. A person may live in one country but be considered a tax resident in another, depending on income, business, or the length of stay.

Individual:
An individual is resident for tax purposes in Ghana if that individual is:

1. A citizen (except someone who has a permanent home outside Ghana and lives in that home for the whole of the year of assessment).
2. Present in Ghana during that year for an aggregate period of 183 days or more in any 12-month period that commences or ends during that year.
3. An employee or an official of the Government of Ghana posted abroad during that year.
4. A citizen who is temporarily absent from Ghana for a period of not more than 365 continuous days, where that citizen has a permanent home in Ghana.

Trust:
Trusts are considered resident for tax purposes if they are set up in Ghana; if one of the managers lives in Ghana, or if someone in Ghana makes important decisions for them.

Partnership:
If any of the partners in a business reside in Ghana, the whole business is seen as existing in Ghana for tax purposes.

Company:
Companies are seen as resident for tax purposes if they are registered under the Companies Act, or if their main operational decisions are made in Ghana.

(Section 101, Income Tax Act, 2015 (Act 896))

CRS information is exchanged only between tax authorities and not made public. GRA has strict confidentiality rules to protect taxpayer data. Financial account information can only be used for tax purposes and is subject to confidentiality and data safeguards that meet international standards.

A Taxpayer Identification Number (TIN) is a unique identifier assigned to individuals or entities for tax purposes. It helps tax authorities match reported income and financial information to the correct taxpayer.

Not all countries issue TINs in the same way. Some countries use national ID numbers, social security numbers, or business registration numbers as TINs. Others may not issue a TIN at all but use alternative identifiers.

The OECD maintains a detailed guide on TINs for each jurisdiction, which can be found on the AEOI Implementation Portal:
https://www.oecd.org/en/networks/global-forum-tax-transparency/resources/aeoi-implementation-portal/tax-identification-numbers.html

• How do I submit CRS Reports to the GRA?

CRS Reports are submitted via the MDES Portal, using the required XML format in accordance with the OECD CRS guidelines. Ensure all financial account information is accurate and complete before submission. New users (Financial Institutions) must complete the pre-registration form (Contra Data) before their Financial Institution (FIs) can be registered on the MDES Portal.

 

• When is the submission window for CRS Reports?

CRS Reports can be submitted once the MDES Portal is switched to Reporting Mode, which typically occurs in June each year. The deadline for submission is 30^th June of the reporting year.

 

• What are the filing methods for CRS reports?

Financial institutions can submit CRS reports by uploading financial account data in one of two formats:

• Manual entry: Enter data directly into the MDES Portal. This method may suit FIs with a small number of reportable accounts.
• XML file upload: Prepare and upload a CRS XML file (that complies with the OECD schema) through the MDES Portal. This is the standard method for most institutions.

 

• Is it possible to submit test (XML) files before the official CRS submission?

Financial Institutions can submit test XML reports when the MDES Portal has been switched to Validation Mode (i.e. Release for relations management and testing).

 

• What steps should Financial Institutions take if they receive an error message after attempting to submit CRS returns via XML upload?

Review the error message on the MDES Portal and consult available guides on the GRA EOI webpage. For further assistance regarding a specific error, please contact info.aeoi@gra.gov.gh.

• What should a financial institution do if no reportable accounts are found for a given year?

If no reportable accounts are identified for the reporting year, the FI should submit a Nil Report using the manual entry option on the MDES Portal. This serves as an official declaration that no reportable accounts exist for the reporting year.

In accordance with Section 8 of Act 967 (Standard for Automatic Exchange of Financial Account Information Act, 2018), financial institutions are also required to maintain documentation that supports their CRS compliance activities. This includes records of due diligence reviews, account classifications, and internal assessments used to justify the Nil Report. These records must be retained and made available to the Competent Authority (GRA/ EOI Unit) upon request.

 

• How does a Reporting Financial Institution report an individual that does not have both a first and last name?
• Per OECD FAQ guidance, the CRS schema requires the completion of the data elements for first name and last name. If an individual’s legal name is a mononym or single name, the first name data element should be completed as “NFN” (No First Name) and the last name field should be completed with the account holder’s mononym.

• What should I do if I forget my Multi Data Exchange Solution (MDES) Portal password?

If you forget your password for the MDES Portal, click the “Forgot Password?” link on the login page, enter your registered email and username, and follow the instructions sent to your email to reset your password. Make sure to check your spam or junk folder if you don’t see the email. If you’re still unable to reset your password, contact the Team for assistance at info.aeoi@gra.gov.gh.

 

• How do I report issues related to the MDES Portal?

To report a MDES account/ portal issue, please email the AEOI Team at info.aeoi@gra.gov.gh. A Registered User must provide their name, the Financial Institution name, Financial Institution TIN, and brief details of the issue being experienced. Unless exceptional circumstances apply, the AEOI Portal Team only corresponds with the Contact Person (MDES), a Registered User (MDES), a Responsible Person or an approved external service provider. That is, the person sending the correspondence must have authorisation to access the information on the Portal or the Portal Team will be unable to assist.

OECD Tax Transparency Resource Centre
https://www.oecd.org/en/topics/sub-issues/international-standards-on-tax-transparency/tax-transparency-resource-centre.html