ICI Global Welcomes OECD Guidance for Global Tax Compliance Framework
Washington, DC, 21 July 2014 - Keith Lawson, Senior Counsel, Tax Law for ICI Global, made the following statement about guidance released today by the Organisation for Economic Co-operation and Development (OECD) for collecting customer information from financial institutions, and exchanging that information between governments globally:
“ICI Global applauds the OECD and its member governments for the guidance provided today in the Common Reporting Standard [CRS] Commentary. This detailed guidance will help minimize implementation inconsistencies among adopting countries. The global fund industry’s ability to implement the CRS consistently, and with fewer administrative burdens, will be enhanced significantly by the Commentary’s many essential clarifications. One such clarification, properly implemented, will eliminate burdens that otherwise would have been imposed on current investors opening new financial accounts.”
“ICI Global has long supported the OECD’s tax compliance objectives. A global standard for collecting customer information that is applied consistently is the right approach to enhancing worldwide tax compliance.”
“We strongly encourage governments to adopt the reporting standard consistently and urge the OECD to continue to work closely with businesses to identify country-specific deviations as they arise and to take other steps to minimize burdens on funds and their investors.”
ICI Global has worked closely with the OECD, governments, and other financial industry participants developing the CRS for implementing the automatic exchange of information (AEOI) initiative, commonly referred to as ‘Global FATCA.’ The OECD’s effort was built on work done to implement the U.S. Foreign Account Tax Compliance Act (FATCA), which seeks to enhance tax compliance by U.S. taxpayers.
For more information on this issue, please see Lawson’s ICI Viewpoints blog post describing the CRS.