2022 CRS Feedback Shows the Importance of TIN Validation

Gibraltar has received feedback from its partner jurisdictions for the 2022 CRS reporting cycle recently, and there are some areas in need of improvement. Many jurisdictions* are having difficulty matching data reported by Gibraltar Financial Institutions to their existing tax systems. The Gibraltar Competent Authority believes that matching errors have largely resulted from incorrect TINs, and have asked Financial Institutions in Gibraltar to “Incorporate additional checks in [their] processes and systems as well as re-focus [their] internal due diligence and compliance activities in these areas”,  referring specifically to TIN accuracy.

Local Financial Institutions are being urged to use the OECD’s online tool to assist them in determining the validity of client TINs. Unfortunately, the OECD’s offering is actually more of a documentation resource than a tool. Using it to manually verify TINs is time consuming, confusing and prone to error.

*Australia, Finland, Israel, Malta, Portugal, Belgium, Hungary, Italy, Mexico, Slovak Republic, Brazil, Indonesia, Lithuania, Netherlands, Spain, Czech Republic, Ireland, Luxembourg, Peru, Sweden, Isle of Man, Hong Kong, Japan, India, Malaysia, France, Canada, United Kingdom and Estonia.