Exchange of Tax Information Should Be Automatic, G-20 Leaders Say

By Alistair M. Nevius, J.D.

Editor: Sally P. Schreiber, J.D.

Miscellaneous

"Profits should be taxed where economic activities deriving the profits are performed and where value is created"—so said the leaders of the G-20 major economies as they endorsed the Organisation for Economic Co-operation and Development's (OECD's) global standard for automatic exchange of tax information at the G-20 summit in Brisbane, Australia, on Nov. 16. The leaders committed their countries to automatically exchanging information with one another by the end of 2018, subject to the passage of enabling legislation in the affected countries.

Those members of the G-20 that had not before signed on to the OECD's information-exchange program include Australia, Brazil, Canada, China, India, Indonesia, Japan, Russia, Saudi Arabia, Turkey, and the United States. The United States has been pursuing similar information on its own under the Foreign Account Tax Compliance Act, P.L. 111-147. The OECD has been encouraging automatic exchange of financial information among countries as a way to prevent multinational companies from moving profits to low-tax jurisdictions.

Tax Insider Articles

TECHNOLOGY

2020 tax software survey

COVID-19 upended tax season. Did CPAs’ tax software help them cope? Read the results of our annual tax software survey

TAX RELIEF

Quirks spurred by COVID-19 tax relief

This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.