For Whom the Bell (May) Toll: Tougher Incentives with Respect to Information Exchange
Included in the latest Communiqué of the G20 Finance Ministers and Central Bank Governors meeting, which took place on 4 and 5 September 2015 in Ankara, Turkey, we find the following report:
Report on Possible Tougher Incentives for Failure to Respect the International Exchange Information on Request Standards
This report proposes “tougher incentives and implementation processes, to deal with those countries which fail to respect Global Forum standards on exchange of tax information on request”.
Among the actions envisioned, the report suggests:
- Further publicising the Global Forum ratings to amplify their reputational impact.
- Restrictions in relation to the routing of investments through jurisdictions failing to respect the EOIR standard.
Reputational risk and transparency issues are rapidly becoming inescapable components of both corporate governance and international tax governance, as we firmly enter the BEPS-era.
The complete report is available here.
Robert Robillard, Ph.D., CPA, CGA, MBA, M.Sc. Econ.
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