Costa Rica, 46 countries commit to automatic exchange of tax, financial info

May 7th, 2014 (InsideCostaRica.com) Tax evaders and privacy advocates beware – Costa Rica and 46 other countries signed up yesterday to automatically share banking, financial, and tax information in what the OECD is touting as a major step towards cracking down on global tax evasion.

 

The Declaration on Automatic Exchange of Information in Tax Matters was endorsed during the OECD’s annual Ministerial Council Meeting in Paris by all 34 member countries (which include the United States and Canada), along with Argentina, Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabia, Singapore and South Africa.

 

Under the declaration, Costa Rica, the United States, Canada, and 44 other countries have committed to “swiftly” pass new domestic laws that will allow them to collect information on all bank accounts and automatically exchange it with other participating countries.

 

Previously, countries would have to request data on suspected tax cheats using a process that was often complicated and some countries were uncooperative.

 

“The Declaration commits countries to implement a new single global standard on automatic exchange of information. The standard, which was developed at the OECD and endorsed by G20 finance ministers last February, obliges countries and jurisdictions to obtain all financial information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis,” the OECD said in a press release.

 

“Tax fraud and tax evasion are not victimless crimes: they deprive governments of revenues needed to restore growth and jeopardize citizens’ trust in the fairness and integrity of the tax system,” OECD Secretary-General Angel Gurría said. “Today’s commitment by so many countries to implement the new global standard, and to do so quickly, is another major step towards ensuring that tax cheats have nowhere left to hide.”

 

The United States was the catalyst for the change with its Foreign Account Tax Compliance Act (FATCA), which requires international banks to provide data on accounts held abroad by its citizens and companies or face sanctions.

 

The OECD will deliver a detailed Commentary on the new standard, as well as technical solutions to implement the actual information exchanges, during a meeting of G20 finance ministers in September 2014.

 

costa rica news

ATTENTION: If you are seeing this message,


Subscribe via E-Mail

Get all of our news delivered fresh to your inbox every morning! Just tell us your name and where to send it using the form below.

PS – We hate spam too. We don’t sell or share our list with anyone, and we never send commercial email.

* = required field


Like us on Facebook and receive our news in your timeline

  • roberto

    Better start saving your used mayonnaise jars and coffee cans.

  • DaveP

    Since the names of S.A. owners is still and seemingly always will be private, I doubt this effects that many people, no?

    • http://insidecostarica.com/ Timothy Williams

      I honestly don’t have the time to explain right now (otherwise, I really would) but the names of S.A. owners in Costa Rica has been public (or nearly public) information for a number of years now.

      Not only that, but case law in Costa Rica has broken the ‘shield’ on numerous occasions – at LEAST for the last 5 years – between S.A. signatories and the company itself.

      Having an S.A. is next to nothing of protection against liability, tax evasion, or any other activity that would run south of (international) law, or Costa Rica law or liability for that matter.

      Best,

      Tim Williams
      Editor
      Inside Costa Rica