Stepping up efforts to curb international tax evasion, the Organisation for Economic Co-operation and Development (OECD), a global economic policy forum with 34 member government, has unveiled a new data-sharing initiative aimed at exposing the practice.
Responding to a mandate from G20 leaders to reinforce action against tax avoidance and evasion, OECD developed a new global standard for the automatic exchange of information between tax authorities worldwide.The standard calls for information from financial institutions to be automatically shared with other countries on an annual basis. The protocol details the account information to be exchanged, the financial institutions that need to report, the different types of accounts and taxpayers covered, and common due diligence procedures to be followed by financial institutions.
