A Global Standard on Exchange of Information

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Exchange of informationWhat is the Global standard for exchange of information?
The G20 meet in Russia in September 2013 amongst the discussions was the exchange of information and with assistance from the Organisation for Economic Co-operation and Development,OECD, the creation of a standard for automatic exchange of financial account information was produced. The paper sets out guidelines for individual countries to collect information from their financial institutions and make the information freely available and automatically shared with other countries on an annual basis. Its guide lines state what information which institutions need to be involved and who the information should be about. The paper is split in to two sections, section 1 is giving an over view of the standards whilst section 2 gives the Model Competent Authority Agreement (CAA) and the Common Reporting and Due Diligence Standards (CRS) that together make up the standard. If you wish to download the paper in full please visit the OECD website using this link http://www.oecd.org/ctp/exchange-of-tax-information/automatic-exchange-of-financial-account-information.htm
Who is involved in the exchange of information?
Although the G20 have lead the way on the exchange of information more than 60 countries have signed up to the standard, some of these countries include the European Union, the United Kingdom, United states, Australia, Brazil, Canada, China, Finland, France, Germany, India, Israel, Japan, Korea, Malaysia, Mexico, New Zealand, Norway, Saudi Arabia, Singapore, South Africa, Sweden, Switzerland and Turkey. As can be seen from this partial list, the places left for anybody wishing to evade paying due taxes are becoming less and less, and as more countries join in and the standard for exchange of information becomes more streamlined it will not be too long before all ‘loop holes’ have been dissipated.
When will the exchange of information come into effect?
On the 20th and the 21st of September 2014 the Financial Ministers of the G20 will meet in Cairns where the OECD will deliver detailed information regarding the standard and the technical side of how it will be delivered including a time scale of the standard being rolled out.