Israel becomes 91st country to join OECD tax avoidance effort

Israel has joined 90 other countries in signing up to the OECD’s instrument to combat offshore tax avoidance and increase transparency in tax matters.

The middle-eastern country became the 91st jurisdiction to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters yesterday, which enables the exchange of information, tax examinations and assistance in tax collection between signatories.

OECD secretary general Angel Gurría said: “Israel has recognised the importance of improving tax transparency and has implemented the necessary reforms in recent years to ensure that its legal and regulatory framework is up to the task.”

The convention will be seen as a key instrument in the implementation of new standards for the automatic exchange of financial information between countries and the base erosion and profit shifting reforms (BEPS) recently finalised by the OECD and endorsed by the G20 at their summit in Ankara, Turkey at the start of November.

Israel follows Uganda, the Seychelles, Mauritius and El Salvador, who have all signed up to the convention this year.