The OECD has released the full version of a new global standard for the exchange of information between jurisdictions to help governments tackle tax fraud and tax evasion. The Standard for Automatic Exchange of Financial Account Information in Tax Matters calls on governments to obtain detailed account information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis.
The OECD says the Standard provides for annual automatic exchange between governments of financial account information, including balances, interest, dividends, and sales proceeds from financial assets, reported to governments by financial institutions and covering accounts held by individuals and entities, including trusts and foundations. The OECD says more than 65 countries and jurisdictions have already publicly committed to implementation, while more than 40 have committed to a specific timetable leading to the first automatic information exchanges in 2017.
The Standard was, developed at the OECD under a mandate from the G20, endorsed by G20 Finance Ministers in February 2014, and approved by the OECD Council. The OECD says it will formally present the Standard to G20 Finance Ministers at their next meeting in Cairns, Australia, on 20-21 September 2014.
[LTN 140, 23/7/14]