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OECD: Update on status of tax transparency initiatives (AEOI and CRS)

OECD: Update on status of tax transparency initiatives

The Organisation for Economic Cooperation and Development (OECD) today issued an update on the status of global tax transparency initiatives.

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The OECD release reports the following:

  • More than 90 jurisdictions participate in the common reporting standard (CRS) initiative, and have exchanged information on 47 million offshore accounts, with a total value of approximately €4.9 trillion.
  • The Automatic Exchange of Information (AEOI) initiative (activated through 4,500 bilateral relationships) is the largest exchange of tax information in history.
  • Voluntary disclosure of offshore accounts, financial assets, and income in the run-up to full implementation of the AEOI initiative resulted in more than €95 billion in additional revenue (tax, interest, and penalties) for OECD and G20 countries over the 2009-2019 period (up by €2 billion since the last reporting by OECD in November 2018).
  • Preliminary OECD analysis (drawing on a methodology used in previous studies) shows the effect of AEOI on bank deposits in international financial centres; deposits held by companies or individuals in more than 40 key centres increased substantially over the period 2000 to 2008, reaching a peak of U.S. $1.6 trillion by mid-2008. These deposits have fallen by 34% over the past 10 years, representing a decline of U.S. $551 billion, as countries adhered to tighter transparency standards. A large part of that decline is due to the onset of the AEOI initiative, which accounts for about two thirds of the decrease. Specifically, AEOI has led to a decline of 20% to 25% in the bank deposits in international financial centres, according to preliminary data. The complete study is expected to be published later this year.

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