Daily Archives: September 28, 2021

Multilateral Agreement On The Practical Modalities For Exchange Of Information

Since 2012, political interest has increasingly focused on the possibilities of automatic exchange of information. The automatic exchange of information involves the systematic and periodic transmission, by the country of origin, of information on “mass” taxpayers to the country of residence through different categories of income (e.g. B dividends, interest, etc.). It can provide timely information on infringements where taxes have been defrauded either on a return on investments or on the underlying amount of capital, even if tax administrations previously had no evidence of non-compliance. For more information on the standard, see the fact sheet. The standard provides for the annual automatic exchange of financial account information between governments, including balances, interest, dividends and proceeds from the sale of financial assets reported to governments by financial institutions and covering the accounts of individuals and companies, including trusts and foundations. It defines the information on the financial accounts to be exchanged, the financial institutions that are required to report, the different types of accounts and the registered taxpayers, as well as common due diligence procedures for financial institutions. “More information on automatic exchange of information On 23 February 2014, G20 Finance Ministers approved the common standard for the automatic exchange of tax information, now included in Part II of the full version of the standard. 6 The OECD Declaration on the Automatic Exchange of Information in Tax Matters was approved by the 34 Member States and several third countries on 7 May 2014. More than 65 jurisdictions have publicly committed to implementing them, with more than 40 committing to a specific and ambitious timetable that will culminate in the first automatic exchange of information in 2017 (Early Adopters). On 22 September 2014, the Global Forum on Transparency and Exchange of Information for Tax Purposes presented to the G20 Development Working Group a roadmap for the participation of developing countries in the new OECD standard for the automatic exchange of financial account information.

This roadmap is part of efforts to curb multinational tax evasion and offshore tax evasion in developing countries. On 29 October 1014, 51 jurisdictions, 39 of which were represented at ministerial level, signed a multilateral agreement of competent authorities on the automatic exchange of information on the basis of Article 6 of the Multilateral Convention. Subsequent signatures of the agreement, including a signing ceremony on the sidelines of the OECD Ministerial Meeting (June 2015), bring the total number of countries to 61. This Agreement defines the modalities for the exchange of information and when, as provided for in the standard. . . .