We have shifted our office to level 4 in the same building

OECD: global standard for automatic exchange of financial account information

On 13 February 2014, the Organisation for Economic Co-operation and Development (OECD) released a new single global standard for the automatic exchange of financial account information between tax authorities worldwide.

Offshore tax evasion remains a serious problem for countries and jurisdictions worldwide, with vast amounts of funds deposited abroad and sheltered from taxation when taxpayers fail to comply with obligations in their home countries.

The "Standard for automatic exchange of financial account information" is the OECD's response to a mandate from G20 leaders to reinforce action against tax avoidance and evasion and inject greater trust and fairness into the international tax system. Part I contains the introduction to the standard and Part II contains the text of the Model Competent Authority Agreement (CAA) and the Common Reporting and Due Diligence Standard (CRS). The OECD is expected to deliver a detailed commentary on the new standard, as well as technical solutions to implement the actual information exchanges, during a meeting of G20 finance ministers in September 2014.

The new standard draws extensively on previous OECD work on the automatic exchange of information. It incorporates progress made in this area within the European Union and ongoing efforts to reinforce global anti-money laundering standards. It also recognises the catalytic role that implementation of the US Foreign Account Tax Compliance Act (FATCA) has played in the G20 move towards automatic exchange of information in a multilateral context.

More than 40 countries have committed to early adoption of the standard. The Global Forum on Transparency and Exchange of Information for Tax Purposes, hosted by the OECD, brings together 121 jurisdictions worldwide. It has been mandated by the G20 to monitor and review implementation of the standard.

The OECD will formally present the standard for the endorsement of G20 finance ministers during a 22–23 February 2014 meeting in Sydney, Australia. The G20 invited the OECD to develop a global standard on automatic exchange of information in 2013, and remains the driving force between the move toward greater tax transparency worldwide.

Source: www.oecd.org