Automatic Data Exchange Comes Closer

September 9, 2013 International Tax Cooperation

taxationST.PETERSBURG – The automatic exchange of tax information is set to become reality worldwide, as G20 countries prepare to ramp up their fight against the global problem of tax evasion.

Following the conclusion of the meeting of the leaders of G20 countries on September 6th in St. Petersburg the G20 Leaders’ Declaration was released, detailing the results of the discussions held, and outlining the measures which the G20 will take to fight tax evasion in the future.

The leaders re-assured the international society that the issue of tax evasion needs to be tackled globally in order to ensure that taxes are collected “…where economic activities deriving the profits are performed and where value is created”.

As the key part of the anti-evasion efforts, the leaders agreed that new automatic information exchange agreements will be implemented, and they invited other countries to participate in the development, as a strong international participation will help ensure that automatic data exchange a new global standard.

According to the Declaration, the global standard for automatic exchange agreements will be prepared by February 2014, while the technical aspects of the agreements will be finished by mid-2014, and, ultimately, the exchange of information should start by the end of 2015.

Photo by mondays child