Comments
Efforts to combat international tax evasion have been substantially strengthened with as many as 103 jurisdictions now participating in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC), which is seen as the most powerful instrument against offshore tax evasion and avoidance
The latest to join MAC, which is seen as ‘gold standard’ for co-operation in tax administration, are Burkina Faso, Malaysia, Saint Kitts and Nevis, Saint Vincent and the Grenadines and Samoa, taking the overall tally past the 100-jurisdictions mark.
Among those who recently joined MAC include Liechtenstein, a popular tax haven, Dominican Republic and Nauru. Panama, another popular tax haven, had also in July this year decided to sign the MAC.
However, under the MAC, Panama will not take up information exchange obligations automatically, but on request, extending the network simultaneously with some 100 countries.
The 103 jurisdictions participating in MAC include 15 jurisdictions covered by territorial extension.
Range of countriesThis covers wide range of countries including all G20 countries, all BRICS, all OECD countries, major financial centres, major financial centres and an increasing number of developing countries.
The MAC is the most comprehensive multilateral instrument available for all forms of tax co-operation to tackle tax evasion and avoidance, and guarantees extensive safeguards for the protection of taxpayers’ rights.
It was developed jointly by the OECD and the Council of Europe in 1988 and amended in 2010 to respond to the call by the G20 to align it to the international standard on exchange of information and to open it to all countries, thus ensuring that developing countries could benefit from the new and more transparent environment.
Today it is the world’s leading instrument for boosting transparency and combating offshore tax evasion and avoidance.
MAC also serves as the premier instrument for implementing the new Standard for Automatic Exchange of Financial Account Information in Tax Matters developed by the OECD and G20 countries.
It can also be used to swiftly implement the transparency measures of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project such as the automatic exchange of Country-by-Country reports under Action 13 as well as the sharing of rulings under Action 5 of the BEPS Project.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.