Big step forward in countering global tax evasion
10 Jun 2019 - by Staff reporter
International efforts to improve transparency via automatic exchange of information on financial accounts are improving tax compliance and delivering concrete results for governments worldwide, according to new data released last week by the OECD.
More than 90 jurisdictions participating in a global transparency initiative under the OECD’s Common Reporting Standard (CRS) since 2018 have now exchanged information on 47 million offshore accounts, with a total value of around EUR 4.9 trillion. The Automatic Exchange of Information (AEOI) initiative - activated through 4 500 bilateral relationships - marks the largest exchange of tax information in history, as well as the culmination of more than two decades of international efforts to counter tax evasion.
“The international community has brought about an unprecedented level of transparency in tax matters, which will bring concrete results for government revenues and services in the years to come,” according to OECD secretary-general Angel Gurria last week. “The transparency initiatives we have designed and implemented through the G20 have uncovered a deep pool of offshore funds that can now be effectively taxed by authorities worldwide. Continuing analysis of cross-border financial activity is already demonstrating the extent that international standards on automatic exchange of information have strengthened tax compliance, and we expect to see even stronger results moving forward,” Gurria said.