The OECD report consists of two parts. Part I is a progress report by the Global Forum on Transparency and Exchange of Information for Tax Purposes, which focuses on "peer review reports" that assess jurisdictions' commitment to the international standard for tax information exchange. Part II is a report on the work on BEPS and efforts to address offshore tax evasion by the OECD Secretary-General.
In Part II of the report, the OECD describes proposals to establish a global model for the automatic exchange of information for tax purposes as the new international standard for tax co-operation, including model operating documents and platforms, which it expects to have completed by 2014. The OECD outlines the key success factors for an effective model and notes that countries can put this model into practice where they:
- Enact broad framework legislation to facilitate the expansion of a country's network of partner jurisdictions
- Select or enter into a legal basis for the exchange of information
- Adapt the scope of reporting and due diligence requirements and coordinating guidance
- Develop common or compatible IT standards.
The report provides potential timeframes for each action item.
For more information, contact your KPMG adviser.
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