On 16 February 2022 the first meeting of the Asia Initiative was held by the Global Forum on Transparency and Information Exchange for Tax Purposes. Taking part in the meeting were senior officials from 18 Asian members of the Global Forum and three development partners.

The OECD’s Global Forum is responsible for ensuring that jurisdictions effectively implement the standard of transparency and exchange of information on request and the standard of automatic exchange of financial account information. The Forum carries out a monitoring and peer review process to assess how countries have implemented the standards. There is also a technical assistance programme to support efforts by members of the Global Forum to implement the standards.

The Asia Initiative, launched on 17 November 2021 at a plenary meeting of the Global Forum, is a capacity-building initiative aiming to facilitate the implementation of the internationally agreed standards on transparency and exchange of information and to promote the use of these tax transparency standards to combat tax avoidance and evasion and to counter other illicit financial flows.

The Asia Initiative aims to provide a framework for encouraging co-operation among countries of the region in tax matters. This can be done in particular by using the provisions of the Convention on Mutual Administrative Assistance in Tax Matters.

The meeting noted the important role of the tax transparency standards in assisting the economic recovery after the pandemic and the need for closer regional and international co-operation in combating tax evasion and other types of illicit financial flows.

The meeting provided an opportunity for the representatives of Global Forum member countries to share their experience and explore the possibilities arising from greater tax transparency co-operation in the fight against tax evasion. This can ensure fairer taxation and contribute to global efforts for a sustainable recovery from the economic crisis caused by the pandemic.

The Asia Initiative meeting was held under Indonesia’s G20 Presidency, and the Director General of Taxes of Indonesia outlined Indonesia’s G20 tax priorities and the part played by tax transparency in Indonesia’s strategy for economic recovery. Senior tax officials from other Asian countries also gave presentations outlining actions taken by their countries to strengthen revenue mobilisation after the pandemic, and the use of mutual administrative assistance agreements to enhance international cooperation.

The Global Forum has emphasised that focused regional capacity-building programmes can promote tax transparency and development agenda, and strengthen the fight against tax evasion and other illicit financial flows.

The meeting reached general agreement on the content of draft declaration, subject to further internal discussions. The participants also discussed a proposal for the governance of the Asia Initiative. The initial mandate of the Asia Initiative is to run until 2026, guided by Co-Chairs who will be senior officials of a Tax Administration or Ministry of Finance. The Co-Chairs will be designated for a two-year term with an overlap of only one year.

The next actions in relation to the Asia Initiative will be the signing of the Ministerial Declaration, the development of the high-level work plan, and the commencement of its activities.