Australia, Canada, Chile, Costa Rica, India, Indonesia and New Zealand are the latest countries to sign the Multilateral Competent Authority Agreement (MCAA) on automatic exchange of information under the OECD/G20 standard. This brings total number of jurisdictions to 61, with a further 23 committed to implementing the standard with the same timetable as the G20, strengthening international efforts to tackle offshore tax evasion.
The agreement implements the Standard for Automatic Exchange of Financial Information in Tax Matters (see, www.bit.ly/1AXjpY) developed by the OECD and G20 countries and presented in 2014. The standard provides for annual automatic exchange between governments of financial account information, including balances, interest, dividends and sales proceeds from financial assets. It covers accounts held by individuals and entities, including trusts and foundations.
OECD secretary-general Angel Gurría welcomed the expansion of signatories of the MCAA. ‘The world is quickly becoming a much smaller place, both for tax evaders and tax administrations. We expect a truly significant amount of additional financial information to circulate among authorities in the coming years, resulting in less tax evasion, greater tax revenues and a fairer tax system for honest taxpayers.’
‘Our work is already having an impressive impact, with more than €37bn already collected by two dozen countries under voluntary compliance initiatives launched in advance of automatic exchange taking effect. We now have a collective responsibility to ensure the widest possible adoption of this standard and to assist in its effective implementation so that all jurisdictions benefit from it, OECD, non-OECD, large and small, developed and developing.’ The first automatic information exchanges are expected in 2017 and 2018.
Australia, Canada, Chile, Costa Rica, India, Indonesia and New Zealand are the latest countries to sign the Multilateral Competent Authority Agreement (MCAA) on automatic exchange of information under the OECD/G20 standard. This brings total number of jurisdictions to 61, with a further 23 committed to implementing the standard with the same timetable as the G20, strengthening international efforts to tackle offshore tax evasion.
The agreement implements the Standard for Automatic Exchange of Financial Information in Tax Matters (see, www.bit.ly/1AXjpY) developed by the OECD and G20 countries and presented in 2014. The standard provides for annual automatic exchange between governments of financial account information, including balances, interest, dividends and sales proceeds from financial assets. It covers accounts held by individuals and entities, including trusts and foundations.
OECD secretary-general Angel Gurría welcomed the expansion of signatories of the MCAA. ‘The world is quickly becoming a much smaller place, both for tax evaders and tax administrations. We expect a truly significant amount of additional financial information to circulate among authorities in the coming years, resulting in less tax evasion, greater tax revenues and a fairer tax system for honest taxpayers.’
‘Our work is already having an impressive impact, with more than €37bn already collected by two dozen countries under voluntary compliance initiatives launched in advance of automatic exchange taking effect. We now have a collective responsibility to ensure the widest possible adoption of this standard and to assist in its effective implementation so that all jurisdictions benefit from it, OECD, non-OECD, large and small, developed and developing.’ The first automatic information exchanges are expected in 2017 and 2018.
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