The OECD will deliver detailed commentary on the new standard, as well as technical solutions to implement information exchanges, during a meeting of the G20 finance ministers in September 2014.
The OECD released its global standard for automatic exchange of financial account information on February 13, 2014. The global standard was developed by the OECD and G20 countries, in close cooperation with the EU. The standard is based on the U.S. FATCA Model 1 intergovernmental agreement (IGA). The U.S. FATCA tax and reporting provisions acted as a catalyst for this move toward automatic exchange on a multilateral basis.
The new standard provides a common global approach for jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. To that end, the standard sets forth the financial account information to be exchanged; the financial institutions that need to report; the different types of accounts and taxpayers covered; as well as common due diligence procedures to be followed by financial institutions.
For more information, see "OECD - Automatic exchange of tax information declaration; similarities to FATCA", prepared by KPMG U.S.
For more information, contact your KPMG adviser.
Information is current to May 20, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500