The Organisation for Economic Cooperation and Development (OECD) has released the full version of its new global standard for the exchange of information between jurisdictions.
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 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 new consolidated version includes commentary and guidance for implementation by governments and financial institutions, detailed model agreements, as well as standards for harmonised technical and information technology solutions, notably a standard format and requirements for secure transmission of data.
“The G20 mandated the OECD to work with G20 and OECD countries and stakeholders toward the development of an ambitious information exchange model that would help governments fight tax fraud and tax evasion,” said OECD secretary-general Angel Gurria.
The OECD will formally present the Standard to G20 Finance Ministers at their next meeting in Cairns, Australia, in September.
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.
More jurisdictions are expected to commit to implement the Standard in the run up to the late-October meeting of the Global Forum Transparency and Exchange of Information for Tax Purposes on which brings together more than 120 countries and jurisdictions, to be held in Berlin and hosted by the German Ministry of Finance.
OECD, Cayman, International, Angel Gurria