OECD calls for special meeting on ‘Panama Papers’

The Organisation for Economic Cooperation and Development (OECD) has called a special meeting of tax administrators from leading economies on April 13 in Paris to coordinate international responses to the Mossack Fonseca files, popularly known as ‘Panama Papers’.

The ‘Panama Papers’ are leaked documents from a Panamanian law firm Mossack Fonseca that specialises in offshore holding companies. The meeting will convene officials from the Joint International Tax Shelter Information & Collaboration Network (JITSIC), which is tasked with responding to tax compliance issues and ensure fast and effective information exchange with other tax administrations. India will also be participating in this special meeting convened by the OECD, it is learnt. The special meeting will see Government officials from around the world explore possibilities of co-operation, information sharing, identify tax compliance risks and agree on collaboration action, in light of ‘Panama Papers’ revelations, said a statement issued by the OECD, which represents 34 high and middle income countries.

The ‘Panama Papers’ contain an “unprecedented amount of information” including over 11 million documents covering 2 lakh companies in 21 offshore jurisdictions, the OECD has said.

Commenting on the development, Amit Maheshwari, Partner, Ashok Maheshwary & Associates, a CA firm, said that the new development is another milestone in enhanced cooperation between governments to target tax evaders. “This goldmine of information can be put to use much earlier and more effectively if all the countries cooperate and exchange information. This whole development is laudable and would have a long term impact on the use of tax havens,” Maheshwari told BusinessLine .

Aseem Chawla, Partner, MPC Legal, a law firm, said that Indian representation for the upcoming discussions at OECD does signify India's resolve and commitment on exchange of information matters.

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