OECD: Report to G20, additional steps under tax transparency standards

OECD: Additional steps under tax transparency standards

The Organisation for Economic Cooperation and Development (OECD) today delivered a report to the finance ministers of the G20 countries advocating that all jurisdictions need to implement tax transparency standards, and proposing that the G20 take additional steps to urge that all countries and jurisdictions immediately endorse and implement the global tax transparency standards.

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As noted in today’s OECD release, the OECD Secretary-General’s report identified full implementation of the existing standard on the exchange of information on request in time for the 2017 summit meeting of the G20 leaders as a top priority. 

The OECD found that:

  • Eight (8) jurisdictions still do not have sufficient legal and regulatory frameworks in place, and, as a result, are blocked in Phase 1 of the peer review process. 
  • Six (6) jurisdictions are only now being examined in Phase 2 of the review process (assessment of actual effectiveness of information exchange on request)
  • Twelve (12) jurisdictions are rated as only being “partially compliant” at the conclusion of the Phase 2 reviews. 

Currently, some 98 jurisdictions have already committed to the common reporting standard (CRS) the automatic exchange of information (AEOI) adopted by the G20 in 2014 and set to enter into force over the 2017-18 period. 

Today’s OECD report:

  • Urges the G20 to demand that all jurisdictions commit to AEOI and honor existing commitments to implement AEOI by the agreed timelines
  • Suggests that G20 members further consider the development of defensive measures against non-compliant jurisdictions
  • States further progress is needed on the implementation of beneficial ownership identification rules
  • Supports an inter-government effort to fight tax crime and illicit financial flows and for new recommendations to strengthen effectiveness of inter-agency and cross-border co-operation 

The OECD also stated that it would be ready to assist other initiatives such as the proposal released today by the finance ministers of the G5 (France, Germany, Italy, Spain, and the United Kingdom) to develop a standard of automatic exchange of beneficial ownership information.

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