Pascal Saint Amans – Director, OECD Centre for Tax Administration and Policy
The OECD has confirmed the criteria for G20-mandated blacklisting of ‘uncooperative jurisdictions’ in the after-burn of the Panama Papers.
The work of the OECD Global forum (Global Forum) is concerned with defining and implementing tax transparency standards and so the ‘objective criteria’ that they have provided for the G20 could only legitimately relate to the work of that group.
Here is the list:
- Implementation of the Exchange of Information on Request Standard (EOIR) – at least a “largely compliant” rating.
- Implementation of the Automatic Exchange of Financial Account Information Standard (AEOI) – committed to implement CRS and begin exchanges by 2018.
- Exchange network – Participation in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters or a sufficiently broad exchange network that provides for EOIR and AEOI.
A cooperative jurisdiction will meet at least two of the above criteria.
As for next steps, there will be a G20 Finance Ministers meeting in July and a Leaders’ Summit in September.
It is useful to note that but for the wording of the second criterion which provides an alternative to signing the Multilaterial Convention, the US would remain in the ‘non-compliant box’ .
For countries who have committed to exchanges by 2017, and who, for a number of reasons which have been acknowledged by the Global Forum as not with merit, the fact that the implementation deadline for blacklisting purposes is now 2018 suggests that even if countries have committed to exchanges a year earlier, revising their own timetable for implementation (commitment having already been established) ) should not, without more, trigger a ‘uncooperative’ rating.
For countries who have yet to join the Global Forum despite entreaties to do so by the OECD and the Global Forum Secretariat, it should come as no surprise if the G20 list includes countries that fall into that group.
See more: https://tax.thomsonreuters.com/blog/checkpoint/OECD-Holds-Second-Round-of-Tax-Talks