By Dónal Godfrey, Global Forum SecretariatGlobal Forum on Transparency and Exchange of Information for Tax Purposes

Global Forum web site: www.oecd.org/tax/transparency

Transparency and Exchange of Information:

The Impact of the Global Forum’s work on the Internal Market

Brussels

March 2012

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What’s at stake in the EU? tax fraud and evasion:

distorts the internal market prevents fair competition based on services shifts tax burdens to law abiding taxpayers

facilitated by lack of transparency and EOI, i.e. strict bank secrecy and confidentiality laws

lax response to requests for information, e.g. delayed or inadequate response

= no level playing field inside or outside the EU

March 2012

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Who we are in the EU?

http://eoi-tax.org/

New GF members:Latvia (review in 2013)Lithuania (review in 2013)

Non-GF members:BulgariaRomania

EU Member States reviewed:Austria (Phase 1)Belgium (Phase 1)Cyprus (Phase 1)Czech Republic (Phase 1)Denmark (Phase 1+2)Estonia (Phase 1)France (Phase 1+2)  Germany (Phase 1+2)Hungary (Phase 1)Ireland (Phase 1+2)Italy (Phase 1+2)Luxembourg (Phase 1)Malta (Phase1)Netherlands (Phase 1+2)Slovakia (Phase 1)Slovenia (Phase 1)Spain (Phase 1+2)United Kingdom (Phase 1+2)

Undergoing reviews (2012):Finland (Phase 1+2)Greece (Phase 1+2)Poland (Phase 1)Portugal (Phase 1)Sweden (Phase 1+2)

March 2012

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Who we are worldwide?

March 2012

http://eoi-tax.org/

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What we do?The Global Forum standards on transparency and exchange of

information can be depicted as a triangle or pyramid:

• Exchange of information on request with safeguards to protect taxpayers’ rights and confidentiality.

• Availability of information particularly accounting, bank and ownership information

• Access to information and powers to obtain it

March 2012

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Implementing the Standards

Global Forum peer reviewso Terms of Reference (3 categories/10 essential elements)o Peer driven exercise (2 Phases)o More than 60 reviews already completedo Determinations and recommendations with 3 tier rating system (Phase 1) + 4

tier rating mechanisms (Phase 2)

Report to the G20 analyses o Level of cooperationo Level of complianceo Main deficiencies: number of recommendations…

March 2012

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Number of recommendations made under Phase 1 for each

of the reviewed jurisdictions

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CHANGES IN EUROPE

March 2012

All countries commit to lift bank secrecy for exchange of information for tax purposes: Austria, Belgium, Luxembourg and Switzerland.

And remove restrictive conditions on bank information requests: Andorra, Estonia and United Kingdom

And ensure owners of bearer shares are identified: Andorra, Austria, Belgium, Denmark, Germany, Ireland, Liechtenstein, Luxembourg, Netherlands, Switzerland and United Kingdom

And sign TIEAS: Liechtenstein and Monaco

And make available accounting information consistent with the standard: Andorra, Austria, Hungary, Netherlands, Liechtenstein and Monaco.

And improve exchange of information in practice

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What’s next now? Supplementary Reports – ongoing Phase 2 reviews – will commence in 2012 starting with

the review of Brazil in June 2012 Competent authority meeting – May 2012 Technical assistance – already commenced Report to G20 again in June 2012 (Mexican Presidency)

March 2012

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And Later?

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Under Construction?

March 2012

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Thank You

Secretariat to the Global ForumEmail:

gftaxcooperation@oecd.org Ph: +33 (0)1 4524 9726

Visit the EOI Portal at:www.eoi-tax.org