Automatic Exchange of Financial Information CRS as a Tool for Strengthening the Tax System and Ensuring Budget Stability

The modern development of international financial relations requires countries to implement new mechanisms to ensure tax transparency and combat tax violations. One of the key tools for achieving this is the automatic exchange of financial information, particularly through the implementation of the Common Reporting Standard (CRS). This article examines the main aspects of this process, starting from the multilateral Convention on Mutual Administrative Assistance in Tax Matters to the application of the CRS standard and the mechanisms of information exchange between countries. Specifically, the focus is on the legal and technical requirements that must be taken into account to ensure the effectiveness of the exchange. The methods of analysis, comparison, and synthesis are used to study international standards of automatic information exchange, as well as Ukrainian legislation in the context of its compliance with international requirements. The system approach method is applied to assess the effectiveness of this process implementation in Ukraine, particularly in the context of ensuring tax transparency and budget stability, while the methods of interpretation of legal acts are employed to study legal aspects. The role of Ukraine in international cooperation and its participation in the implementation of the CRS standard, which allows the exchange of information with tax authorities in over 100 countries, is highlighted. The importance of automatic exchange in reducing opportunities for tax evasion through offshore accounts and improving financial transparency is discussed. The categories of financial institutions subject to reporting under the CRS standard are defined, as well as the information that must be disclosed, including data on financial accounts, their owners, and the transactions carried out on them. The deadlines for completing due diligence on existing and new financial accounts are described, particularly the requirements for reporting on individual and organizational accounts. The article emphasizes the importance of clear implementation of these standards to ensure the effective exchange of information, which contributes to the fight against tax evasion and the enhancement of financial transparency at the international level.