Global Forum Reviews Tax Transparency of Nine Countries

June 2, 2011 International Tax CooperationTaxation in FranceTaxation in HungaryTaxation in Isle of ManTaxation in ItalyTaxation in PhilippinesTaxation in SingaporeTaxation in SwitzerlandTaxation in USA

Global Forum Reviews Tax Transparency of Nine CountriesThe Global Forum on Transparency and Exchange of Information for Tax Purposes has released several new reports on the results of recently conducted reviews of the implementation of international tax information exchange standards.

The mechanism of implementation and legal frameworks for international tax transparency and information exchange in nine different countries have been reviewed by the Global Forum on Transparency and Exchange of Information for Tax Purposes, with the results being released on May 1st.

The newly published reports outlined the results of assessments of the legal frameworks for the transparency and the exchange of tax information in Hungary, the Philippines, Singapore, and Switzerland. Five additional reports were also released on the current practice of implementation of international tax exchange information in the Isle of Man, Italy, France, New Zealand and the USA.

In the report on Switzerland it was noted that over the last two years the government of the country has had a significant change in its attitude and toward tax information exchange, and rapid progress has been made to bring national rules in line with internationally agreed standards. However, it was noted that several of the country’s currently signed exchange agreements are still below modern standards and need to be reviewed, and will be reassessed by the Forum in a subsequent peer review in the second half of 2012.

In their respective reviews, the Philippines and Singapore were regarded as having made significant process to meeting international standards, but were deemed as being deficient in the number of international agreements that they hold, with the Global Forum stating that not all relevant international partners are covered in the currently signed network of agreements.
Hungary was seen as having several deficiencies, most notably a lack of information provided about partnerships and companies registered in the country. Hungary’s next peer review is scheduled for early 2014.

The separate peer reviews of Italy, the United States, and France, all noted that each country already has an extensive network of tax information exchange agreements, covering most of their major trading and economic partners. It was also noted that the international standards of tax information exchange are being adequately met. However, all three countries were recommended to investigate methods to speed up response times to requests for information from their international partners.

The review of the Isle of Man praised the country’s network of singed information exchange treaties, but suggested that improvements could be made to the availability of accounting information on limited partnerships. The review of New Zealand found that the country follows acceptable standards of information exchange, but there were some shortfalls in the reporting of accounting records and information regarding the beneficial owners of of liquidated companies.

Photo by The Life of Bryan