Margaret Hodge, Chair of the Public Accounts Committee, has welcomed a major step forward in the fight against global tax evasion and avoidance
The new Global Standard on the Automatic Exchange of Financial Account Information was published today by the OECD in partnership with the G20. Under the standard, governments worldwide will gather taxpayer information from banks and other financial institutions operating in their jurisdictions and share it with other countries on an annual basis.
Mrs Hodge, who last week attended the OECD’s parliamentary conference on tax matters, said “This is a significant breakthrough that will be welcomed by all of us who have been campaigning for greater tax transparency.
The extension of information sharing and co-operation between countries is absolutely fundamental to the global clampdown on evasion and avoidance. Tax authorities will be able to use this information to identify taxpayers who are cheating the system and failing to comply with their obligations.
I welcome the Government’s commitment to adopt the new Global Standard, but actions speak louder than words. We will need to closely monitor what action they are taking to implement it in an effective and timely way.
At a time when public finances are under pressure it is vital that everybody contributes their fair share to the common pursue for the common good. It is also important that British companies employing British workers operate on a level playing field so that they can fairly compete with global enterprises.”
Angel Gurría, Secretary General of the OECD, said: “This is a real game changer. Globalisation of the world’s financial system has made it increasingly simple for people to make, hold and manage investments outside their country of residence. This new standard on automatic exchange of information will ramp up international tax co-operation, putting governments back on a more even footing as they seek to protect the integrity of their tax systems”
You can read more about Automatic Exchange of Information here: