In a release on Tue 18.6.2013, the OECD said it has presented to G8 leaders the steps needed to create a fairer and more transparent global tax system. A new OECD report, A Step Change in Tax Transparency, prepared at the request of the G8 for the Lough Erne Summit in Northern Ireland, outlines 4 concrete steps needed to put in place a global, secure and cost effective model of automatic exchange of information. The report follows the G20 Finance Minister’s endorsement in April 2013 of automatic exchange of information for tax purposes as the expected new standard. It says because tax evasion is a global issue, the model needs to have worldwide reach to avoid merely relocating the problem elsewhere. The OECD said the process also needs to be standardised to minimise costs for businesses and governments and to improve effectiveness.
The 4 steps are:
- enacting broad framework legislation to facilitate the expansion of a country’s network of partner jurisdictions;
- selecting the legal basis for the exchange of information;
- adapting the scope of reporting and due diligence requirements and coordinating guidance, and
- developing common or compatible IT standards.
Source: OECD release, 18 June 2013
[LTN 115, 18/6/13]