The OECD reported that tax transparency efforts increased last year as information on at least 111 million financial accounts was exchanged automatically worldwide, covering total assets of nearly 11 trillion euros (US$11.1 trillion).
This is an increase of 48% in terms of the number of accounts and 22% in asset value, compared to the 2020 figures.
In a July update report to G20 finance ministers, the OECD said the increase was due to the growing number of automatic information exchange bilateral relationships and the improved reporting of data to the OECD Global Forum.
The report said the statistics were a sign of maturing tax transparency standards and added that “the end of bank secrecy for tax purposes is an ever-progressing reality”.
The status update noted that, with 165 members, most of which are developing countries, the Global Forum had made substantial progress in advancing the G20 agenda regarding international tax cooperation and exchange of information.
Tax transparency efforts started in 2009, first with the exchange of tax information in individual cases, on request, under bilateral agreements. It has since progressed to a standard that sees the automatic exchange of tax information on financial accounts held by taxpayers from another country, under a multilateral agreement.
The report said regional initiatives are focusing mainly on Asia and Africa.
On the African continent, the number of information exchange bilateral relationships among 34 member countries has increased from 1,162 in 2015 to 4,135 last year.
In 2021, the exchange of tax information enabled three African countries to identify nearly EUR40 million in unpaid taxes.
Under the Punta del Este Declaration Initiative, Latin American countries reported 261 million euros of additional revenues identified in 2021 as a result of tax transparency efforts.
Source: Cayman Compass
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