Developing States To Receive Tax Transparency Support
The OECD’s Global Forum recently adopted a plan of action to help developing countries participate in and benefit from the automatic exchange of financial account information for tax purposes.
Under the plan, developing countries have been invited to undergo a preliminary assessment of their capacity to implement the Common Reporting Standard, the OECD’s new standard on the automatic exchange of tax information, which provides that countries should automatically transmit financial information in respect of foreign taxpayers to those taxpayers’ home country authority annually to support tax enforcement work.
The assessment will allow these developing countries, in consultation with the Global Forum Secretariat, to arrive at a practicable commencement date for automatic exchange of tax information, supported by a tailored action plan. Technical assistance will be offered to support implementation in collaboration with other international organizations and member countries.
The step-by-step approach is intended to ensure automatic exchange of information is taken to all corners of the globe, with progress delivered through bespoke assistance and at multiple speeds in recognition of the different capacities and risks of developing countries. In 2017, 49 jurisdictions commenced exchanging information automatically, with a further 53 jurisdictions finalizing preparations to start exchanges in 2018.
To advance its developing country plan of action, the Global Forum has called on international development agencies, governments, civil society, and other potential donors to lend their support.
