On 9 to 11 November 2022 the Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum) held its 15th Plenary Meeting. The main theme of the discussions was to bring transparency and exchange of information to the next level.
In 2022, the Global Forum delivered significant achievements in its monitoring, peer review and capacity-building activities. Activities returned to pre-pandemic levels, and efficiency gains were achieved from the continuing use of virtual working methods. During 2022, the Global Forum completed its first peer reviews examining the practical effectiveness of the standard on the automatic exchange of financial account information (AEOI). Also, the second round of peer reviews continued in relation to the standard transparency and exchange of information on request (EOIR). The Global Forum also strengthened the programme on capacity building and outreach (CBO).
Significant progress in AEOI
The initial AEOI effectiveness peer reviews indicated that the most committed jurisdictions are on track in their implementation of the standard while other jurisdictions still need to take steps to improve implementation. The peer reviews examined details of the frameworks put in place to ensure that the AEOI standard is implemented effectively, looked at the activities being carried out, and received peer input.
Most of the committed jurisdictions have begun implementing robust administrative frameworks to ensure that financial institutions comply with the requirements, verifying that they are reporting complete and accurate information. Most of the committed jurisdictions are exchanging the relevant information effectively but some are still in the early stages of developing compliance frameworks. In the next few years, the Global Forum will focus on the implementation of compliance frameworks to ensure the effectiveness of the AEOI standard in combating offshore tax evasion.
The Global Forum is to commence a further round of peer reviews based on an enhanced framework designed to gain further assurance that jurisdictions are ensuring compliance by financial institutions. The peer reviews will include on-site visits and an annual process to enable each jurisdiction’s exchange partners to raise their concerns around the practical process of exchange and transmission of the information.
Transparency and Exchange of Information on Request (EOIR)
The peer review programme on the implementation of the EOIR standard continued in 2022 with a total of 20 peer review reports published. Owing to the pandemic the peer review was phased for 11 jurisdictions, with a further phase planned to examine practical implementation in due course. Most of the jurisdictions examined had a satisfactory legal and regulatory framework, and the practical functioning of the information exchange will be assessed in a second phase peer review.
Capacity Building and Outreach (CBO)
In 2022 assistance was provided to 95 jurisdictions and training was carried out for more than three thousand officials. Other initiatives included the Information Security Management Network, through which 145 officials from 58 jurisdictions share experience and best practice on information security.
Task Force on Risk
The Task Force on Risk completed a two-year project on risk in 2022, identifying possible risks to the implementation of the transparency and EOI standards. The Task Force analysed almost 100 issues and risks, mostly identified through input from Global Forum members. The next steps will involve sharing the risks with the identified risk owners so they can consider any required action. The identified risks will also be used for awareness building as part of the training activities.
