Pakistan becomes the 104th jurisdiction to join the most powerful multilateral instrument against offshore tax evasion and avoidance
14/09/2016 – Today, at the OECD Headquarters in Paris, Senator Mohammad Ishaq Dar, Minister of Finance of Pakistan, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in the presence of OECD Secretary-General Angel Gurría, therewith becoming the 104th jurisdiction to join the Convention.
The Convention is the most powerful instrument for international tax cooperation. It provides for all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection. It guarantees extensive safeguards for the protection of taxpayers’ rights.
14 September 2016 - Senator Mohammad Ishaq Dar, Minister of Finance and Revenue of Pakistan at the signing ceremony of the sign the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), with Angel Gurría, Secretary-General of the OECD
By signing, Pakistan will send a strong signal of its commitment to fight offshore tax evasion and avoidance. Morevover Pakistan is a Member of the BEPS inclusive framework and has such will exchange automatically country by country reporting as required by Action 13 of the BEPS package. The Convention provides the ideal instrument to swiftly implement automatic exchange so the signing and ratification of the Convention is very timely.
The Convention 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 more transparent environment.
Since then, the Convention has become a truly global instrument. It is seen as the ideal instrument for swift implementation of the new Standard for Automatic Exchange of Financial Account Information in Tax Matters developed by the OECD and G20 countries as well as automatic exchange of country by country reports under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project and is a powerful tool in the fight against illicit financial flows.