The Organisation for Economic Cooperation and Development (OECD) plans to unveil enhancements to its standard for an automated exchange of information among signatories, a key effort in tackling offshore tax evasion. The new format will officially be introduced at the upcoming G20 meeting in Sydney in the latter half of February 2014.
As reported by the Economic Times, this effort is in tandem with the G20 invitation to the OECD in 2013 to develop such a global standard of information exchange, to progress towards transparency and proper disclosure in the tax system worldwide.
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India will follow through with the new protocols on the standard, according to the Economic Times. India works closely with the OECD and has already signed the automatic exchange of information between tax authorities.
OECD Secretary General, Angel Gurria, said that the new mechanism will address the challenge faced by governments to manage their tax revenues from an increasing amount of investors managing their finances overseas. Through these developments, the global body aims to bring governments to a unified level of compliance and disclosure.
The OECD further elaborated that developments will incorporate the progress in the European Union’s actions on global anti money-laundering standards and provide a more "definitive framework" on the due diligence process and what banks should report on the different accounts of taxpayers.
