Tax Transparency Improving Globally

April 28, 2014 International Tax Cooperation

PARIS – Tax transparency is improving around the world, with an increasing number of countries implementing and upholding new legal frameworks to facilitate the exchange of tax information.

Late last week the Organization for Economic Cooperation and Development issued a new statement with the results of 12 new reviews on the progress made by non-OECD countries towards implementing rules to promote tax transparency, showing that the “…international community continues making progress on tax transparency.”

According to the results of the OECD’s latest round of peer reviews, the “… legal and regulatory framework for transparency and exchange of information” in Columbia, Latvia and Saudi Arabia can now be deemed as adequate, and each of the countries now qualifies to undergo the next stage of reviews on their international information exchange practices.

The OECD’s reviews also showed that Malaysia, Slovenia and the Slovak Republic, which have all previously passed the first round of reviews, are either “Largely Compliant” or “Compliant” with practical international standards for the exchange of tax information, while Barbados was regarded as only “Partially Compliant”.

Reviews were also conducted on the progress made by countries previously seen as not having adequate legal frameworks for transparency and information exchange, ans it was shown that since their previous reviews Botswana, the United Arab Emirates, and Mauritius have now implemented adequate legal frameworks regarding tax transparency.

Despite the progress made in most of the reviewed countries, Panama and the Federated State of Micronesia were both seen as having inadequate legal frameworks for transparency at the current stage.

Photo by: epSos .de