May 31, 2011
Monique Perry Danziger, +1 202 293 0740 ext. 222
Current OECD Standard Falls Short, Says Global Financial Integrity
WASHINGTON, DC – As the Organization for Economic Cooperation and Development (OECD) convenes its third meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes in Bermuda today, addressing deficiencies in the current OECD standard of tax information exchange is crucial, said Global Financial Integrity (GFI).
“The global standard for tax information exchange falls far short of what is needed,” said GFI Director Raymond Baker. “National tax authorities continue to be constrained by the current OECD tax information exchange standard, whereupon information is only shared on request. Basically, tax evaders have the advantage under the current system of on-demand tax information exchange.”
It is estimated that individuals have about US$12 trillion of assets in jurisdictions other than their own countries of residence that are not declared in their own countries of residence; the lost tax revenue annually from such undeclared assets is estimated at US$255 billion. Tax evasion by corporations and other entities is also a major problem.
“Automatic exchange of tax information would help tax collection in developed and developing countries,” added Baker. “Additional measures that would help curtail illicit capital flight, corruption, and tax evasion include requiring all multi-national corporations to report sales, profits, and taxes paid in all jurisdictions and harmonization of money-laundering statutes globally.”
To learn more, visit the Automatic Tax Information Exchange page on the website of the Task Force on Financial Integrity and Economic Development.
Global Financial Integrity (GFI) is a Washington, DC-based research and advocacy organization which promotes transparency in the international financial system.
For additional information please visit www.gfip.org.