IEIM721010 - Definition of Intermediary

An intermediary is not defined in the regulations, so Regulation 2(2) applies so that the definition is taken from the Model Rules. The definition of intermediary in the Model Rules is at Rule 1.3.This reads:

“intermediary” means

(a) any person responsible for the design or marketing of a CRS Arrangement or Opaque Offshore Structure. (“Promoter”) and

(b) any person that provides Relevant Services in respect of a CRS Avoidance Arrangement or Opaque Offshore Structure in circumstances where the person providing such services could reasonably be expected to know that the Arrangement or Structure is a CRS Avoidance Arrangement or an Opaque Offshore Structure (“Service Provider”) The standard of “reasonably expected to know” must be determined by reference to the Service Provider’s actual knowledge based on readily available information and the degree of expertise and understanding required to provide the Relevant Services.

The definition envisages two distinct types of intermediaries: those who design and market a CRS Arrangement or Opaque Offshore Structure (referred to as ‘promoters’), and those who provide assistance or advice with respect to the design, marketing, implementing or organisation of a CRS Arrangement or Opaque Offshore Structure (referred to as ‘service providers’). This is subject to an exclusion in certain circumstances for persons who are employees. For more information on this see IEIM721080.