Global Tax Authority Cooperation Discussed At OECD

by Ulrika Lomas, Tax-News.com, Brussels

02 June 2009

Tax authorities from around the world have agreed on a new cooperation plan to encourage tax compliance and counter tax evasion and abusive tax avoidance, with special focus on banks, wealthy individuals and offshore activities.

Two reports issued at the fifth meeting of the OECD’s Forum on Tax Administration, which brings together tax commissioners from 34 OECD and non-OECD countries, set out a roadmap for future cooperation:

• ‘Building Transparent Tax Compliance by Banks’ examines the role of banks in designing complex structured finance transactions that can be used to reduce tax payments through aggressive tax planning schemes for themselves or their clients.
• ‘Engaging with High Net Worth Individuals on Tax Compliance’ identifies risks and complexities associated with this group of taxpayers.

Tax Commissioners also intend to prioritize offshore compliance issues, given the greater willingness of countries to engage in information sharing to counter tax abuses.

Participants in the two-day meeting also discussed ways in which developed countries can help emerging economies to improve tax-collecting capacity and capabilities which will enhance the fiscal capacity of their governments.

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