International community has achieved unprecedented success fighting offshore tax evasion

taxes.jpeg

(Sharon McCutcheon, Unsplash)

This article is brought to you in association with OECD.


On 26-27 November, the 10th Anniversary Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum) in Paris will bring together more than 500 delegates from 131 member jurisdictions for renewed discussions on efforts to advance the tax transparency agenda.

Ten years since the G20 declared the end of banking secrecy, the international community has achieved unprecedented success in using new transparency standards to fight offshore tax evasion. Working through the Global Forum, 158 member jurisdictions have implemented robust standards that have prompted a tidal shift in exchange of information for tax purposes.

At the heart of this shift are thousands of bilateral exchange relationships now in place, which have enabled more than 250 000 information exchange requests over the past decade. According to data in the Global Forum’s 10th anniversary report, in 2018 nearly 100 member jurisdictions automatically exchanged information on 47 million financial accounts, covering total assets of USD 4.9 trillion. In total, more than EUR 100 billion in additional tax revenue has been identified since 2009.

A recent OECD study shows that wider exchange of information driven by the Global Forum is associated with a global reduction in foreign-owned bank deposits in international financial centres (IFC) by 24% (USD 410 billion) between 2008 and 2019. The commencement of AEOI in 2017 and 2018 is associated with an average reduction in IFC bank deposits owned by non-IFC residents of 22%.

“The Global Forum has been a game-changer,” said OECD Secretary-General Angel Gurría. “Thanks to international co‑operation, tax authorities now have access to a huge trove of information that was previously beyond reach. Tax authorities are talking to each other and taxpayers are starting to understand that there’s nowhere left to hide. The benefits to the tax system’s fairness are enormous,” Mr Gurría said.

Almost all Global Forum members have eliminated bank secrecy for tax purposes, with nearly 70 jurisdictions changing their laws since 2009. Almost all members either forbid bearer shares– previously a longstanding impediment to tax compliance efforts – or ensure that the owners can be identified. Since 2017, members must also ensure transparency of the beneficial owners of legal entities, so these cannot be used to conceal ownership and evade tax.

Tax transparency is particularly important for developing countries. With support from the Global Forum, 85 developing country members have used exchange of information to strengthen their tax collection capacity. The Africa Initiative has helped African members identify over EUR 90 million in additional tax revenues in 2018, thanks to information exchanges and voluntary disclosures. To improve developing countries’ uptake of automatic exchange of financial information, the OECD-UNDP Tax Inspectors Without Borders Initiative today launched a pilot project aimed at supporting the effective use of the data.

“There is still a lot of work ahead of us,” said Zayda Manatta, head of the Global Forum Secretariat. “Members must continue efforts to ensure full implementation of existing standards and address the tax transparency challenges of an increasingly integrated and digitalised global economy.”

Further information on activities can be found in the Global Forum 10th Anniversary report. Further details on the implementation of the new standard on the automatic exchange of information (AEOI) on offshore financial accounts can be found in the 2019 AEOI Implementation Report.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

How technology can help us achieve universal healthcare

Manufacturing reimagined: from improved productivity to profitable growth

Venezuela: MEPs demand free presidential elections and an end to repression

Carbon neutrality and funds for EU programmes are EP priorities for EU summit

International community has achieved unprecedented success fighting offshore tax evasion

ECOFIN: Choosing between the re-unification of Eurozone and a stalemate

Why the way of loving closes doors of health?

“One Belt One Road”: Its relevance to the European Companies

Brussels enraged with Swiss referendum result to keep out EU citizens

Vote at 16 in Malta: next stop Europe

GSMA Mobile 360 Series –Digital Societies, in association with The European Sting

The entire Australian state of New South Wales is in drought

Climate change and health – can medical students be the solution?

Industrial products: Lifting the last impediments in the EU single market

It’s time to end our ‘separate but unequal’ approach to mental health

State aid: Commission refers Greece to Court for failure to recover incompatible State aid from mining company Larco

Cultural diversity can drive economies. Here are lessons from India and South Asia

EU Budget 2020 deal: Investing more in climate action, youth and research

‘All atrocity crimes are preventable’ and can never be justified – UN chief

Trying to cure bank cancer with analgesics

Sassoli: Migration agreement respects fundamental principles of Parliament’s proposal

The invisible L word: the struggles to achieve SRHR, as HIV/AIDS prevention and treatment for lesbian population

Ceasefire holds in Tripoli, but core problems remain, says UN Libya mission chief

UN underscores the need to celebrate indigenous peoples, not confine them

This is how wellbeing drives social change and why cultural leaders need to talk about it

Impact of high debt levels on least developed countries ‘cannot be overstated’, says UN

YouTube stars get creative at UN, to promote tolerance

Gender minority and health sector: promoting mental health with better medical education

EU Parliament raises burning issues over the FTA with the US

Everybody against Japan over yen’s devaluation

LGBTQI+ and medicine, in the Land of the Pure

JADE Spring Conference 2018 is on its way: Young entrepreneurs gather in Brussels to shape Europe

EU: Huge surplus in the trade of services with the rest of the world

The success story of a Chinese investment in the Greek port of Piraeus

Christmas spending: Who can afford not to cut?

The staggering loss of the Arctic Ocean’s oldest sea ice shown in time-lapse

Blockchain is not a magic bullet for security. Can it be trusted?

Capital Markets Union: Commission reports on progress achieved ahead of European Council

Who really cares about the 26.2 million of EU jobless?

Four major resources for new European young entrepreneurs

Why gin made from peas helps the environment

FROM THE FIELD: Argentina Preserving Pristine Forests

Sustainability, peace, security ‘best guarantee against instability’ Guterres to Security Council

Empowering people living with HIV ‘will end the epidemic’, says AIDS agency chief

Malaysia’s last Sumatran rhino died – here are more species on the verge of extinction

Foreign direct investments the success secrete of Eurozone

Migrant workers sent more money to India than any other country last year

What does artificial intelligence do in medicine?

Cameron postpones speech in Holland

Aid funding for Occupied Palestinian Territories at ‘all-time low’

Bias in AI is a real problem. Here’s what we should do about it

EU is officially in recession

UN honours peacekeepers who ‘paid the ultimate price’, for the sake of others

Climate action ‘both a priority and a driver of the decade’: Guterres

EU’s VAT system further equipped to tackle fraud in e-commerce and to help small businesses grow

Minority governments ‘à la mode’ in Europe but can they last long?

5G will change the world – but who will keep it safe?

How ‘savings circles’ empower women in rural Africa

Opening – February plenary session, 27 new seats

Can cybersecurity offer value for money?

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s