El Salvador has signed OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters, in a bid to dodge offshore tax evasion.
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The convention, developed by the Council of Europe and the OECD, aims to boost international co-operation among tax authorities to enhance their ability to clamp down on tax evaders.
It offers all possible forms of administrative support between states in the assessment and collection of taxes.
This includes automatic exchange of information, simultaneous tax examinations as well as international assistance in the collection of tax debts.
El Salvador is the 86th nation, the eighth Latin American country and the third member of the Central American Common Market to sign the convention.
Till date, over 60 countries have signed the convention, which includes G20 nations such as the UK, Germany and Iceland, all BRICs, and about all OECD countries.
