Recent developments in the move towards more global transparency and enhanced mutual assistance in direct tax matters

Abstract

Tax transparency has become a major challenge across the globe as many jurisdictions have realised that a full opacity might be harmful not only for themselves in terms of reputation but also it would potentially have a negative impact on the global economy. We have observed a new trend over the last decade whereby cross-border cooperation is encouraged and jurisdictions and international organizations are keen to participate to new or enhanced initiatives allowing for more exchange of information and encouraging tax transparency. Chapter 1 will give some background on the change of trend from bank secrecy from automatic exchange of financial information outline with the process towards more cross-border cooperation. In Chapter 2, the content of the recently launched Foreign Act Tax Compliant Act and the international effect of its implementation is analysed. Chapter 3 deals with an examination of the model issued by the OECD, the Common Reporting Standard, including a comparison with the Foreign Tax Compliant Act. The way automatic exchange of information has been implemented and is being enhanced at the level of the European Union will be discussed in chapter 4.