The agreement on automatic exchange of information, also known as the Common Reporting Standard (CRS), is an international agreement among nearly 100 countries to share tax information automatically to combat tax evasion.

Under the CRS, financial institutions in participating countries are required to identify and report information on accounts held by non-resident individuals and entities to their respective tax authorities. The tax authorities then exchange this information with other participating countries on an annual basis.

The CRS was developed by the Organisation for Economic Co-operation and Development (OECD) in response to the growing concern about tax evasion and the use of offshore accounts to hide wealth. The agreement aims to create a more level playing field for taxpayers and enhance transparency in the global financial system.

Participating countries have implemented the CRS in different ways, with some choosing to impose fines or other penalties for non-compliance. In some cases, financial institutions have also faced sanctions for failing to comply with the reporting requirements.

The implementation of the CRS has already led to significant increases in tax revenues for some participating countries. In addition, it has helped to deter tax evasion by non-residents and encouraged greater transparency in the financial system.

However, critics argue that the CRS could create additional administrative burdens for financial institutions and could potentially lead to privacy concerns for individuals.

Overall, the agreement on automatic exchange of information represents an important step towards combating tax evasion and promoting transparency in the global financial system. As more countries continue to join the initiative, the impact of the CRS is likely to grow in the years to come.