Following an assessment, the OECD has released an updated report on the status of the compliance with the transparency standards of the concerned jurisdictions.
The Organisation for Economic Co-operation and Development (OECD) has published a list of “non-cooperative jurisdictions” on tax on Wednesday 28 June 2017 ahead of the leaders G20 leaders summit in Hamburg, and hailed the “great progress” being made on international efforts to tackle tax evasion. The list only contains one country, Trinidad and Tobago.
The report boast ‘massive progress towards the exchange of information on request standard’, despite the fact that this standard has been superseded by the superior alternative of automatic information exchange.
The key finding of the report is that: “As a result of the significant progress made since April 2016, only one jurisdiction (Trinidad and Tobago) still meets the current criteria to be considered not to have made sufficient progress towards satisfactory implementation of the agreed tax transparency standards.”
The global standard, which is preferred by the OECD is now cooperation through automatic, multilateral exchange of tax information between tax authorities. Many jurisdictions taking part in this system have failed to commit to information sharing outside a small group of rich economies, so there are grave challenges to ensure lower-income countries benefit.
Ironically, the biggest financial centre in the world and the biggest OECD member has categorically refused to participate in automatic exchange. The USA demands automatic provision of information from all others, and provides only a few countries with anything in exchange under the biased, bilateral arrangements agreed in support of the Foreign Account Tax Compliance Act (FATCA). The OECD report does note, in the FAQ, the USA’s rejection of the CRS, but erroneously claims that ” the US is automatically exchanging certain information under its many bilateral agreements implementing FATCA and that each of those agreements also includes a commitment to full reciprocity (which would deliver information similar to that exchanged under the CRS).”