TRADE & FINANCE 23
Working with the G20 leadership, the OECD as the standardsetter in international tax matters has been instrumental in bringing about the Common Reporting Standard for the Automatic Exchange of Financial Account Information, endorsed by G20 Leaders in November 2014. It allows tax administrations to detect transfers and funds held offshores that were previously unknown, and unknowable. So far, 94 jurisdictions have committed to undertaking the first exchanges under the CRS by 2017 and 2018. As a consequence, more than 37 billion euros have already been collected in two dozen countries through voluntary disclosure initiatives, with the OECD expecting to announce further progress by November. Developing countries need to be fully integrated in the process. The OECD“ 2014 Roadmap for Developing Country Participation” helps facilitate developing country participation in the new Standard.
The Addis Tax Initiative, an outcome of 3rd International Conference on Financing for Development in Addis Ababa in July, aptly states that access to technical expertise to address crossborder tax issues will rely on broad based capacity building. The OECD / UNDP partnership“ Tax Inspectors Without Borders”, also launched in Addis Ababa, is one such important instrument to meet demand for tax audit support, and to build long-term capacity.
With more challenges ahead for the inclusive growth and tax agenda and in view of the global relevance of the G20 economic governance, the OECD is looking forward to supporting the Turkish Presidency in bringing its goals on implementation and inclusiveness to fruition at the Leaders’ Summit in November and will continue to put its expertise and policy analysis at China’ s disposal for its 2016 G20 Presidency. �
The G20 / OECD Base Erosion and Profit Shifting( BEPS) project to counteract double non-taxation will be finalized by the fall. By realigning the location of profits, these new international tax rules make it possible for all countries to better collect their taxes. This holds especially true for developing countries, which are even more exposed to BEPS than others. We also must continue to work together and build on our inclusive approach when it comes to implementation and monitoring- ensuring that developing countries can participate in partnership via a single, global approach to the international tax rules. More than 60 countries have already joined the OECD / G20 BEPS Project. Regional Policy dialogues are held to facilitate inputs and implementation by developing countries. A special OECD Report on the Impact of BEPS in Low Income Countries addresses specific challenges faced by these countries.