Developed by the OECD together with G20 countries, the standard calls on jurisdictions to obtain information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions that need to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
The OECD will formally present the standard for the endorsement of G20 finance ministers during a 22-23 February meeting in Sydney, Australia. The G20 invited the OECD to develop a global standard on automatic exchange of information in 2013, and remains the driving force behind the move toward greater tax transparency worldwide.
Presenting the new standard, OECD Secretary-General Angel Gurría said: "This is a real game-changer. Globalisation of the world's financial system has made it increasingly simple for people to make, hold and manage investments outside their country of residence. This new standard on automatic exchange of information will ramp up international tax co-operation, putting governments back on a more even footing as they seek to protect the integrity of their tax systems and fight tax evasion."
The new standard draws extensively on previous OECD work on the automatic exchange of information. It incorporates progress made in this area within the European Union and ongoing efforts to reinforce global anti-money laundering standards. It also recognises the catalytic role that implementation of the USForeign Account Tax Compliance Act (FATCA) has played in the G20 move towards automatic exchange of information in a multilateral context.
More than 40 countries have committed to early adoption of the standard. The Global Forum on Transparency and Exchange of Information for Tax Purposes, hosted by the OECD, brings together 121 jurisdictions worldwide. It has been mandated by the G20 to monitor and review implementation of the standard.
Full press release
EBF position
The EBF calls for more manageable exchange of information and expresses concerns about the compliance requirements of the proposed standard published by the OECD.
"Indeed, the alignment foreseen between the EU and the OECD approaches is the only way to ensure that a single, consistent and coherent AEOI framework is put in place, and fragmentation is avoided", declared Guido Ravoet, Chief Executive of the EBF, "but it is crucial to ensure that the AEOI regime is proportionate, operable and sustainable. We are afraid that these prerequisites are not met by the proposed CRS. The proposed standard generates overwhelmingly burdensome administrative procedures, which make the extremely challenging FATCA requirements even worse and apply to much larger volumes of accounts and data. Furthermore, the implementation timetable is totally unrealistic in its current form. The CRS proposal therefore needs to be revised to become more manageable for governments and business alike", he added.
Press release
© OECD
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