G20 Representatives Strike Historic Agreement on Automatic Tax Information Exchange

more+
less-
more+
less-

Tax records will be shared around the world by 2015 as part of a G20 pledge to crack down on international tax evasion. China was the sole holdout until it agreed to the plan just days before the summit in St. Petersburg.

The G20 representatives issued a statement of their commitment to the automatic exchange of information as the new global standard. The G20 countries will develop the details of the plan throughout 2014 with the goal of beginning to exchange information automatically on tax matters among G20 members by the end of 2015.

In announcing the agreement, the G20 trumpeted their progress toward global tax transparency and enforcement since 2009, including

  • a declaration of the end of the era of bank secrecy at the G20 London Summit in April 2009;
  • 120 countries having committed to the G20’s standards of tax transparency, including FATF’s (Financial Action Task Force) recommendations on the disclosure of beneficial ownership of entities;
  • an agreement to consider the voluntary automatic exchange of tax information at the Cannes Summit in 2011;
  • acceptance of the OECD report on automatic tax information exchange at the 2012 Los Cabos Summit; and
  • G20 Finance Ministers and Central Bank Governors full endorsement of the OECD proposal for global multilateral and bilateral automatic exchange of information for tax purposes in July 2013.

 “The 20 largest economies in the world having committed to full-scale automatic exchange of tax information represents a sea change in global tax enforcement,” said Jim Mastracchio, Co-Chair of BakerHostetler’s Tax Controversy Practice. “Presumably, the G20 countries will use their leverage to bring the rest of the world into this new enforcement regime.” Jay Nanavati, a former DOJ Tax Division Assistant Chief added, “the global dragnet for unreported income, accounts, and even real property, is closing around individuals and entities worldwide.”

 

Written by:

Published In:

G20
Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BakerHostetler | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×