The OECD informed that on the request of G20 countries, the Global Forum on Transparency and Exchange of Information for Tax Purposes is to provide a list of non-cooperative jurisdictions for the G20 Leaders Summit in Hamburg in July 2017.
The list is determined based on three benchmarks in a Fast-Track review process. Jurisdictions need to meet at least two of the three benchmarks to avoid inclusion, namely:
An overriding criterion applies alongside the three benchmarks if a jurisdiction is determined by the Global Forum peer review process to be “non-compliant”, or is blocked from moving past Phase 1 of the EOI standard, or where it was previously blocked from moving past Phase 1 and has not yet received an overall rating under the Phase 2 process.
Most countries have managed to upgrade their rating into ‘largely compliant’ or ‘partially compliant’ through progressive improvements. The only exceptional case is Trinidad and Tobago which has a rating of ‘non-complaint’. An ongoing dialogue with Trinidad and Tobago is expected to improve the tax transparency standards.
During the fast track process, which is the first round of EOIR peer reviews, many critical changes have been introduced by the reviewed jurisdictions. Second round of EOIR peer reviews is already ongoing, with the first outcomes to be released later this year.
Apart from participating in the multinational convention, the implementation of AEOI standard is to be supplemented with the deposit of the instruments of ratification, and complemented with the signature and activation of the MCAA CRS. The Global Forum is also peer reviewing the quality of the implementation of the AEOI standard, which has already commenced.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):
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