Thursday, October 8, 2020
Multilateral Convention to tackle tax evasion and avoidance continues to expand its reach in developing countries, as Botswana, Eswatini, Jordan and Namibia join
Today, at the OECD Headquarters in Paris, four countries have signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention), bringing the total number of jurisdictions that participate in the Convention to 141.
Today's signing by Botswana, Eswatini, Jordan and Namibia which takes place as the world addresses the impact of COVID-19, underlines the commitment of the signatories to participate in international tax co-operation and exchange of information and further strengthens the global reach of the Convention, in particular in Africa. In addition to over 8000 exchange relationships in place, these signings will trigger 554 new exchange relationships under the Convention for the four signing jurisdictions following their ratification, allowing them to engage in the exchange of information with 140 other jurisdictions, including all major financial centres.
The Convention enables jurisdictions to engage in a wide range of mutual 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.
The Convention is the primary instrument for swift implementation of the Standard for Automatic Exchange of Financial Account Information in Tax Matters (CRS). The CRS – developed by the OECD and G20 countries – enables more than 100 jurisdictions to automatically exchange offshore financial account information.
Beyond the exchange of information on request and the automatic exchange pursuant to the Standard, the Convention is also a powerful tool in the fight against illicit financial flows and is a key instrument for the implementation of the transparency standards of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project.
- View the 141 jurisdictions participating in the Convention