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The OECD and the G20 have a mutually beneficial relationship in the area of taxation. While the G20 has incentivised changes in OECD standards and initiatives, the OECD has in turn helped push forward cutting-edge issues on the G20 tax agenda.

 

GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES


The work of the Global Forum on Transparency and Exchange of Information for Tax Purposes, hosted and supported by the OECD, has been critical in achieving the remarkable progress registered in the realm of international tax transparency and exchange of information. The Global Forum was restructured in September 2009 in response to a G20 request to strengthen the implementation of these standards and to launch an ambitious peer-review process of national legislation in the realm of tax transparency.

The Global Forum now has 120 members. It has completed the reviews of jurisdictions laws’ and their compliance with the international standard, for the vast majority of its member jurisdictions and its  focus is now moving to the review of practice, where reviews have been completed for 50 Global Forum members.


AUTOMATIC EXCHANGE OF INFORMATION

G20 countries have shown growing interest in promoting automatic information exchange as a tool to improve international tax compliance. In June 2012 the OECD shared a report on the Automatic Exchange of Information with G20 Leaders, and in April 2013 the G20 Finance Ministers welcomed "progress made towards automatic exchange of information which is expected to be the standard" and urged "all jurisdictions to move towards exchanging information automatically with their treaty partners, as appropriate". Responding to this call, the OECD provided a progress report for the 18-19 July 2013 to the Finance Ministers meeting. Furthermore, Leaders in St Petersburg tasked the OECD to present “a new single global standard for automatic exchange of information by February 2014 and to finalise technical modalities of effective automatic exchange by mid-2014”.  Responding to this call, the OECD will deliver a progress report  and the requested new common standard on automatic exchange of information developed by the OECD and G20 countries to the G20 Finance Ministers’ and Central Banks’ Governors at their meeting on 21-23 February 2014.

The Multilateral Convention on Mutual Administrative Assistance in Tax Matters, jointly developed by the OECD and Council of Europe, provides a good multilateral platform for widespread adoption and use of automatic exchange of information. The Convention was updated and opened to all countries at the requst of the G20, and the amended Convention provides for all possible forms of administrative co-operation between states. The Convention contains strict rules on confidentiality and proper use, and permits automatic exchange of information.

All G20 countries have signed or committed to sign the amended Convention and have consistently encouraged all countries to join.


 


 

BASE EROSION AND PROFIT SHIFTING (BEPS)

In the area of fiscal consolidation, the perception that some corporates do not contribute fairly has become a serious political and social issue. In this context, the G20 provided support to OECD’s innovative work on base erosion and profit shifting (BEPS) and welcomed its report on Adressing Base Erosion and Profit Shifting report at their February meeting.

The OECD delivered an Action Plan on Addressing BEPS to the G20 Finance Ministers meeting in July 2013, setting 15 clearly identified actions that will result in a fundamental change to the international tax rules. The report explains how these actions would significantly change the existing tax rules while at the same time ensuring the elimination of double taxation, which is detrimental to cross border investments.


OECD CONTRIBUTIONS TO G20