On April 14, 2016 the OECD published a report from OECD Secretary-General Gurria that was presented during the G20 Finance Ministers meeting in WashingtonDC (UPDATE ON TAX TRANSPARENCY). In the report the Secretary-General urges the international community to call time on all remaining holdouts who have yet to implement internationally agreed tax transparency standards.
In the report a.o. the following subjects are discussed:
· Major progress towards transparency has been achieved with robust standards available
· Efforts must be continued and intensified, and attention now focused on implementation challenges
o Standards must now be endorsed by all relevant jurisdictions
PROPOSED ACTION: The G20 should reaffirm the need for the identified countries and jurisdictions to commit to the CRS without further delay. Countries should now sign the multilateral Convention on Mutual Administrative Assistance in Tax Matters noting that only sovereign States can legally sign this instrument, as well as the Competent Authorities Agreements for the CRS without further delay.
o Standards must now be implemented
PROPOSED ACTION: The G20 should call on all countries and jurisdictions to take all necessary actions to have their legal and regulatory frameworks in place and to properly implement the EOIR standard in practice so that they are all at least “largely compliant” by the G20 Summit in 2017.
o The implementation of the Common Reporting Standard (CRS) needs to be implemented on time
PROPOSED ACTION: Countries and jurisdictions should speed up their implementation efforts of the CRS to ensure they deliver in accordance with the timelines to which they committed and the Global Forum should report to the G20 in July 2016 on the state of the implementation, with a plan to address possible deficiencies.
· Enhancing the effectiveness of transparency and tax co-operation
o Ensure the integrity of the CRS
PROPOSED ACTION: The OECD working with G20 countries will develop measures to ensure the integrity of the CRS, and report on progress to the G20.
o Use the OECD’s Oslo Dialogue to improve access to beneficial ownership information, and take action against those seeking to conceal it
PROPOSED ACTION: Progress should be made towards more effectiveness in the implementation of the beneficial ownership identification rules and alternative solutions should be explored to make sure the information is more readily available. In addition, the OECD’s Oslo Dialogue should be mandated to come up with recommendations to strengthen effectiveness of inter-agency and cross-border co-operation that could tackle tax crimes and other financial crimes.
o Exploring defensive measures
PROPOSED ACTION: The G20 could consider how to further proceed with the recommendations on defensive measures.
Further the report contains an Annex providing an update on Panama’s progress to commit and implement the tax transparency standards.
Click here to be forwarded to Secretary-General Gurria’s Report to the G20 Finance Ministers as available on the website of the OECD, which will open in a new window.
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