Global Tax Treaty to Outlaw Tax EvadersMEDIA ROOM
The introduction of the new global tax treaty aims to outlaw tax evaders is leading governments to express their interest in the signing of this treaty – one that is open to all countries.
A global tax treaty
Being open to all countries means that suspicion would be raised should some financial centres stay out the agreement. This is true for companies and individuals alike, as those with accounts in countries who are not treaty signatories will be viewed as partaking in tax evasion and money laundering.
This might mean the end for tax secrecy as the signing would mean that one has to draw back from secretive financial organisations due to standards put in place for tax authorities to exchange information routinely and simultaneously conduct tax investigations.
A fight against tax evasion
OECD Secretary General Angel Gurria has in fact said that the entry into force of the amended multilateral convention marks an important step in the fight against tax evasion. He also urged all countries to join and added that such amendments will help counter cross-border tax evasion and ensure compliance with national tax laws as acknowledged by G20 Leaders.
The new convention is far wider-ranging than any previous treaty or agreement. Around 20 countries have already signed the convention – and many are from outside the OECD group of 34 world-leading economies.
This process will result in a more transparent global tax environment and is ultimately a measure to introduce anti-avoidance policies and tougher laws, which the US and Britain seem to be leading.