ICI Global welcomes OECD’s proposed global tax compliance framework
ICI Global has welcomed the Organisation for Economic Co-operation and Development’s (OECD) proposed framework for collecting customer information from financial institutions and exchanging that information between governments globally.
Keith Lawson, senior counsel, tax law for ICI Global, says: “ICI Global supports the OECD’s effort to enhance worldwide tax compliance by developing a workable standard for collecting customer information from financial institutions and exchanging that information between governments. The standard announced today for automatic exchange of information (AEOI) generally takes into account the many concerns of funds and their investors, including the need for simplified compliance that aligns with the existing US Foreign Account Tax Compliance Act (FATCA).
“We look forward to seeing the OECD and the governments involved in this exchange take additional steps to ensure that AEOI is implemented in a sensible, cost-effective manner. The detailed implementation guidance that is being crafted now is exceedingly important. Equally important is the need of governments to adopt the reporting standards consistently, and modify domestic laws as necessary, so that financial services providers lawfully can collect and report the required information to governments participating in the initiative.
“Also, to maximise the cost-effectiveness of AEOI implementation, we believe that governments should implement the OECD Treaty Relief And Compliance Enhancement (TRACE) standard.
“We will continue to work closely with the OECD, governments, and other financial industry participants on these remaining steps. Every effort must be made to provide sufficient time to ensure cost-effective compliance—otherwise, funds and their investors will face increased costs and reporting burdens that exceed the benefits of the new framework.”
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