OECD Releases Compliance Ratings on Tax Transparency
A total of three jurisdictions have been judged to have shown compliance with international standards for the exchange of information on request between tax authorities as per the results of a new and improved peer review process conducted by the OECD’s global forum on transparency and exchange of information for tax purposes.
The latest round of peer reviews was launched in the mid of the year 2016. Previously the Global Forum followed a 6 year process during which it was used to first assess the regulatory and legal framework for exchange of information in phase 1 of the peer reviews and looked at the actual practices and procedures as part of phase 2.
The new review process combines the elements of both the phases and forms a single review with emphasis on assessing the availability of and access by tax authorities to beneficial ownership information of all legal entities and arrangements within a jurisdiction.
In the first set of published results, the global forum reviewed information exchange practices in ten jurisdictions. Out of the ten jurisdictions reviewed, the three jurisdictions namely Ireland, Mauritius and Norway received a “compliant” rating.
On the flip side six jurisdictions namely Australia, Bermuda, Canada, Cayman Islands, Germany and Qatar were given a “largely compliant” rating.
The Jurisdiction of Jamaica was rated “partially compliant” causing the global forum to launch a supplementary report on follow-up measures to enable Jamaica to display a greater level of compliance.
Global forum has 144 member countries. The Global Forum is the leading international body for with regards to ensuring the implementation of internationally agreed standards for transparency and exchange of information for tax purposes.
All the member countries of the forum are working together to monitor and to ensure implementation of the standard for the automatic exchange of financial information, under the common reporting standard (CRS), which will commence in September 2017. The process of monitoring and reviewing the implementation of the standard is to make sure the timely delivery of commitments made, the confidentiality of the exchanged information and to highlight the areas where support is needed.
The latest round of peer reviews was launched in the mid of the year 2016. Previously the Global Forum followed a 6 year process during which it was used to first assess the regulatory and legal framework for exchange of information in phase 1 of the peer reviews and looked at the actual practices and procedures as part of phase 2.
The new review process combines the elements of both the phases and forms a single review with emphasis on assessing the availability of and access by tax authorities to beneficial ownership information of all legal entities and arrangements within a jurisdiction.
In the first set of published results, the global forum reviewed information exchange practices in ten jurisdictions. Out of the ten jurisdictions reviewed, the three jurisdictions namely Ireland, Mauritius and Norway received a “compliant” rating.
On the flip side six jurisdictions namely Australia, Bermuda, Canada, Cayman Islands, Germany and Qatar were given a “largely compliant” rating.
The Jurisdiction of Jamaica was rated “partially compliant” causing the global forum to launch a supplementary report on follow-up measures to enable Jamaica to display a greater level of compliance.
Global forum has 144 member countries. The Global Forum is the leading international body for with regards to ensuring the implementation of internationally agreed standards for transparency and exchange of information for tax purposes.
All the member countries of the forum are working together to monitor and to ensure implementation of the standard for the automatic exchange of financial information, under the common reporting standard (CRS), which will commence in September 2017. The process of monitoring and reviewing the implementation of the standard is to make sure the timely delivery of commitments made, the confidentiality of the exchanged information and to highlight the areas where support is needed.
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