Seven more countries have agreed to sign up to the OECD/G20 standard on the exchange of tax information. The latest countries to join are Australia, Canada, Chile, Costa Rica, India, Indonesia and New Zealand. A total of 61 jurisdictions have now signed up to the Multilateral Competent Authority Agreement in relation to the automatic exchange of information.
The standard which was developed by the OECD and the G20 provides for certain financial information to be exchanged automatically between countries. This includes account balances, dividends, interest and the proceeds of the sale of financial assets. The scope of the agreement covers individuals and entities including trusts. The first automatic exchanges of information are to occur in 2017 or 2018.
The Competent Authority Agreement sets out the information to be exchanged and the timing and methods to be used in information exchange. The agreement also provides for confidentiality and safeguarding of the data when it is exchanged.
