Following the announcement on 9 April by HM Treasury that the UK will develop a multilateral tax information exchange agreement with Germany, France, Italy and Spain (G5) based on the intergovernmental agreements entered into under the US Foreign Account Tax Compliance Act (FATCA), a total of 17 EU nations have now announced their intention to engage in the development of ‘a single global standard for automatic exchange of information covering a wide scope of income and entities’.
The development of a common global standard to facilitate this exchange is welcome. Financial Institutions (FI) currently face the requirement to configure multiple reporting formats and timescales to accommodate various reporting regimes. As yet, no indication has been given to the timeframe for introducing these new standards.
These nations are also inviting the remaining EU countries to join their commitment, which will increase the pressure on those countries (such as Austria) to move away from historic principles of banking secrecy…
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