The Organisation for Economic Co-operation and Development (OECD) on 21 July 2014 released single global standard for automatic exchange of financial account 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.
Two Components of the Standard
Main Elements of the Standards for Automatic Exchange
The OECD will formally present the Standard to G20 Finance Ministers at their meeting in Cairns, Australia, on 20-21 September 2014.
The new framework is a major development in the fight against black money and important move towards greater transparency and putting an end to banking secrecy in tax matters.
The Standard was developed at the OECD Secreteriat in Paris, France. These Standards were developed under a mandate from the G20 of major economies, endorsed by G20 Finance Ministers in February 2014, and approved by the OECD Council.
More than 65 countries and jurisdictions have already publicly committed to implementation, while more than 40 have committed to a specific and ambitious timetable leading to the first automatic information exchanges in 2017.
Countries and jurisdictions publicly committed to implementation of Automatic Exchange of Information
Andorra, Anguilla, Argentina, Australia, Austria, Belgium, Bermuda, Brazil, British Virgin Islands, Bulgaria, Canada, Cayman Islands, Chile, People’s Republic of China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Montserrat, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Saudi Arabia, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, Turks & Caicos Islands, United Kingdom, and United States, and the European Union.
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What: Released by OECD
When: 21 July 2014