The AEOI Standard and Tax Transparency

ATL-Editor 10 December 2019

Source: OECDThe Organisation for Economic Co-operation and Development (OECD) is an international organisation comprising 38 member countries, established to foster economic growth, trade, and development on a global scale. Founded in 1961, the OECD provides a forum for governments to collaborate, share policy experiences, and develop solutions to common economic challenges. The OECD's core mission is to promote policies that improve...

2019 is the third year in which jurisdictions have been undertaking the automatic exchange of information on financial accounts and assets pursuant to the Standard for Automatic Exchange of Financial Account Information in Tax Matters (the AEOI Standard).

The AEOI Standard incorporates the legal and technical requirements to provide for a complete and standardized model for the automatic exchange of a wide range of financial information, including information on assets and accounts held by banks, insurers and investment entities (such as funds and certain trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms.) held by individuals and entities resident offshore. This detailed and standardized approach maximizes the potential benefits of the AEOI Standard while, minimizing costs for governments and financial institutions.The results of the 2019 exchanges compared to the 2018 exchanges as reported by each jurisdiction are set out in this document. Overall, so farFunctional analysis is the cornerstone of transfer pricing and international tax compliance, ensuring that intercompany transactions adhere to the arm’s length principle. It evaluates the roles, contributions, and risk profiles of entities within a multinational enterprise (MNE) to determine how profits and costs should be allocated. This process ensures that related-party transactions reflect the pricing that independent enterprises would establish... in 2019 a total of 94 jurisdictions automatically exchanged information. Part 1 sets out the number of partner jurisdictions to which each jurisdiction sent information in 2018 and 2019 respectively. It shows a significant increase in the scope of exchanges between 2018 and 2019.

Part 2 shows the jurisdictions that have not yet completed their technical implementation of the AEOI Standard, demonstrated by the jurisdiction successfully linking up to the Common Transmission System (CTS) set up by the OECD’s Forum on Tax AdministrationTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... and managed by the Global Forum. This is generally the final step in the implementation process. These jurisdictions are therefore those jurisdictions that have the necessary legal frameworks in place but that have not yet successfully tested and linked up to the CTS.

AEOI-implementation-report-2019 Download

Categories: International, OECD

Tags: AEOI Standard, international tax, OECD

ATL-Editor

Cook Islands: FATCA’s impact – this paper applies to many other offshore centres

April/May 2015[1] Impact of FATCA on Cook Islands Entities[2] TABLE OF CONTENTS Background The key differences between FATCA and IGA Models 1 and 2

ATL-Editor 27 April 2015

0 Comments

AFRICA: Sub-Saharan Africa and international arbitration – how does that work?

COMMENT Tax arbitration via new double tax treaties is on the increase. Hence, knowledge of international arbitration is important. Take a look at the following

ATL-Editor 29 August 2014

0 Comments

S.Africa: Summary of the Davis Tax Committee’s BEPS Sub-committee General Report released December 2014

Summary of the Davis Tax Committee’s BEPSBEPS stands for "Base Erosion and Profit Shifting". BEPS refers to tax avoidance strategies used by multinational enterprises (MNEs) to exploit gaps and mismatches in the international tax system. By shifting profits from high-tax jurisdictions to low- or no-tax locations, MNEs reduce their overall tax burden, even if little to no economic activity occurs in the low-tax jurisdictions. These practices erode... Sub-committee General Report released December 2014 by Peter Dachs of ENS Introduction This note provides a summary of

ATL-Editor 26 February 2015

0 Comments

Understanding Double Tax Treaties: A Comprehensive Guide

*For clarity, the term Double Tax TreatyA Double Taxation AgreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... (DTAA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), also known as a Double TaxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... Treaty (or a Tax TreatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), is an international

ATL-Editor 28 August 2024

Zimbabwe: Recent Zimbabwe Court cases

Recent Zimbabwe Court cases Comments provided by TaxMatrix (Pvt) Ltd – http://taxmatrix.co.zw/wp-content/uploads/2016/01/December-2015-MTU.pdf Care International- An employee causes a loss to the entity but loss also aggravated

ATL-Editor 16 January 2016

0 Comments

Related Articles