The quick implementation of the global exchange of financial information for tax purposes has been described as “remarkable” and even “admirable”.
However, concerns remain about weaknesses in the legal framework and the ability of some jurisdictions to ensure taxpayer information is kept confidential and secure.
The Organisation for Economic Cooperation and Development (OECD), together with the G20 countries, started discussions in 2012 to prevent base erosion and profit shifting (Beps). It identified greater tax transparency on a global level as an important tool in the process.
By 2014 the OECD, with the help of the G20 and the European Union, had developed the Standard for Automatic Exchange of Financial Account Information in Tax Matters (Common Reporting Standard).
The standard aims to equip tax authorities with an effective tool to tackle offshore tax evasion through the exchange of information. The first exchanges took place in September last year (2017). At least 130 tax jurisdictions have