Head of South Africa’s Revenue Service and chair of the OECD Global Forum on Transparency and Exchange of Information (Global Forum), Kosie Louw, speaking following the release of 11 new reports on the adequacy of the assessed countries information exchange in practice; and two Phase 1 reports on the adequacy of the legal and regulatory framework of for transparency and exchange of information, had this to say:
“The Global Forum is applying pressure on all jurisdictions to implement the standard and co-operate effectively in tax information exchange. The publication of the ratings later this year will be a crucial moment for all those committed to fighting cross-border tax evasion”
According to information on the OECD website, the Global Forum has reviewed 98 jurisdictions of which 50 will be assigned ratings in November for the individual elements of the international standard and an overall rating of compliant, largely compliant, partially compliant or non-compliant.”
The creation of the list was mandated by the G20 at meetings of its finance ministers and central bank governors. Moreover they also made the strong recommendation that countries sign on to or express an interest in the OECD’s Model Convention on Mutual Assistance in Tax Matters which in effect binds signatories to a new standard of information exchange based on automaticity.
It will be interesting to see how the ratings of the 50 countries will be affected by their acceptance (or otherwise) of the new standard expressed through signing up to the OECD Multilateral Convention.