Fast uptake of global exchange of information for tax purposes is ‘admirable’
However, concerns about confidentiality and clients not understanding the magnitude of the implementation of global tax transparency remain
The quick implementation of the global exchange of financial information for tax purposes has been described as "remarkable" and even "admirable". However, concerns remain about weaknesses in the legal framework and the ability of some jurisdictions to ensure taxpayer information is kept confidential and secure. The Organisation for Economic Co-operation and Development (OECD), together with the G-20 countries, started discussions in 2012 to prevent base erosion and profit shifting (Beps). It identified greater tax transparency on a global level as an important tool in the process. By 2014, the OECD, with the help of the G-20 and the EU, had developed the Standard for Automatic Exchange of Financial Account Information in Tax Matters, also known as common reporting standard (CRS). The standard aims to equip tax authorities with an effective tool to tackle offshore tax evasion through the exchange of information. The first exchanges took place in September last year. At least 130 tax...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.