The Organisation for Economic Development and Cooperation (OECD) has proposed the automatic exchange of information (AIA) as a method of combating international tax evasion. In September 2014, the G20 approved the international AIA standard, which was developed as a standard for the automatic exchange of financial account information (“CRS”) ” of the OECD. The OECD has developed a single policy, called the Multilateral Competition Administration Agreement (MCAA), and a reporting standard, the CRS. The MCAA is the OECD`s international IRS activation agreement. 84 countries. The Common Information Standard (SIR) is a standard of information on the automatic exchange of tax and financial information globally that the Organisation for Economic Co-operation and Development (OECD) developed in 2014. Their goal is to combat tax evasion. More than 100 countries have signed an implementation agreement and others intend to sign it at a later date. The IRS is a comprehensive reporting system that relies heavily on the intergovernmental agreement on the implementation of FATCA.
Like FATCA, IRS requires financial institutions that use nittes established in participating jurisdictions to implement due diligence procedures to document, identify and report accounts under the IRS. The SRC includes banks, brokers, certain collective investment vehicles and certain insurance companies. enterprises. The standard establishes a comprehensive reporting system covering different types of capital income, including interest, dividends, account balances and proceeds from the sale of financial assets. Financial information also contains information about who ends up controlling and who actual beneficiaries are. Such a comprehensive report allows the authorities of the participating jurisdictions to identify the subjects who seek to conceal capital constituting income or assets over which no tax has been paid. At the time of this article, 103 legal systems (including 84 signatories) committed to implementing the IRS. The FATCA agreement was signed on April 29, 2015 between the governments of the Kuwait State Ministry of Finance and the U.S. Department of the Treasury to improve international tax compliance and implement FATCA. What is (FATCA) Foreign Account Tax Compliance Act? This section presents all the bilateral exchange relations currently under way for the automatic exchange of information on IRS, in accordance with Article 6 of the Multilateral Convention and the CRS-MCAA, as well as within the framework of the EU.
In addition, some legal systems have bilateral IRS information exchange agreements under bilateral tax treaties or tax information exchanges.