Tripping over tax information

Last month, at the Ministerial Level meeting of the OECD council, the declaration on Automatic Exchange of Information in Tax Matters was endorsed by 34 member countries, as also leading non-members countries including Brazil, China, India, Saudi Arabia, Singapore, and South Africa. This is a significant development and a milestone for governments in the pursuit of offshore funds.As per OECD, automatic exchange of information involves a systematic and periodic transmission of bulk taxpayer information by the source country to the residence country. This is a pro-active approach taken by the participating countries, wherein responsibility would be assigned to relevant financial institutions FIs to share taxpayer information in a timely and useful manner.OECD has highlighted the need for IT security for electronic information exchange and ensuring that compliance with the standard does not impose an undue cost burden—both for businesses and the administration.

via Column: Tripping over tax information | Expert Counsel Blog.

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