Please enter your email address to receive a password reminder.
Log into Tax-News+
The international community should call time on those territories that have yet to implement internationally agreed tax transparency standards, the OECD Secretary-General, Angel Gurría, said in a new report to the G20.
The report, delivered to G20 Finance Ministers on April 14, 2016, pointed out that a number of jurisdictions have yet to properly implement frameworks for the exchange of tax information on request, first agreed in 2009. It also noted that a number of others have refused to commit to the new standard for automatic exchange scheduled to go into effect in 2017-18.
"Our standards on tax transparency are robust," Gurría said. "They need to be effectively implemented worldwide, by everyone, with no exceptions, so there's nowhere left to hide."
The OECD Secretary-General's report proposes that the G20 should take additional steps to ensure that all countries and jurisdictions immediately endorse and implement all global standards devised and implemented by the Global Forum on Transparency and the Exchange of Information for Tax Purposes.
The first priority is ensuring full implementation of the existing standard on Exchange of Information on Request, in time for the G20 Leaders Summit in 2017, according to a statement from the OECD. At present, eight jurisdictions still do not have sufficient legal and regulatory frameworks in place, and, as a result, are blocked from completing Phase 1 of the peer review process. A further six jurisdictions are only now being examined as part of Phase 2 of the review process, which assesses the actual effectiveness of information exchange on request.
Twelve additional jurisdictions are rated as only being "partially compliant" at the conclusion of their Phase 2 reviews.
The OECD said that 98 jurisdictions have already committed to the Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI) adopted by the G20 in 2014 and set to come into effect over the 2017-18 period, most recently Nauru and Vanuatu. However, two financial centres – Panama and Bahrain – have yet to do so.
The OECD Secretary-General urged the G20 to demand that all jurisdictions commit to AEOI and honor existing commitments to implement AEOI by the agreed timelines. He also suggested that G20 members further consider the development of defensive measures against non-compliant jurisdictions.
The OECD report said further progress is needed on the implementation of beneficial ownership identification rules. The OECD Oslo Dialogue – an inter-government effort to fight tax crime and illicit financial flows – should be mandated to devise new recommendations to strengthen effectiveness of inter-agency and cross-border co-operation, it said.
IMPORTANT NOTICE: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
All rights reserved. © 2017 Wolters Kluwer