OECD creates global standard for tax information exchange

21.07.2014

 New standard for exchange of tax information was published on the OECD web-site on the 21^st of July, 2014.

The standard calls for countries to obtain detailed information on accounts from domestic financial institutions and annually exchange information obtained with other jurisdictions. Under the new standard falls information on balance, interest, dividends and sales transactions, which were made with financial assets from the accounts held by natural persons or entities, including trusts and foundations.

New global version includes commentaries, guidance for the governments and financial institutions as well as standards for harmonized technical and informational substance of data exchange. In particular the format in which information shall be exchanged and measures that shall be taken in order to protect that information.

Formally new standard will be introduced by OECD at the next meeting of the G20 financial ministers in September, 2014, in Australia.

“Our message is clear and simple: standard for automatic exchange of tax information is ready for implementation”, - said Mr. Gurria, Secretary General of OECD.

Source: http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/standard-for-automatic-exchange-of-financial-account-information-for-tax-matters_9789264216525-en#page2

Expert’s opinion

The theatre of absurd continues.

These people cannot find out who and from where released a rocket, that ended three hundred lives of law-abiding taxpayers, but with the confidence create more than 300-pages document on how they will find income from the trade of such kind of services.

Decent people will continue to pay taxes as they do now, and criminals will hire professionals, who have retired from the OECD and the FBI.

All this seems to be the "great assimilation" of the global budget.

But until the fiscal press will be stronger than attractiveness of entrepreneurship - tax revenues will grow only at the expense of the printing press and of the accompanying it process of inflation

Yaroslav Lomakin ( Managing Partner, Honest&Bright)