“The biggest and most important tax conference ever held in Germany,” which will be in Berlin in October 2014 to sign, seal and deliver the new international agreement for the automatic exchange of tax data, after it is approved by the G20 finance ministers in September 2014.
67 countries and legal regions are on board; 40 want to implement the new O.E.C.D standard in 2017. Countries implementing the standard include Switzerland, Luxembourg, Liechtenstein, Singapore, the British Virgin Islands, the Bermuda Islands and the Caymans.
This achievement was accomplished by pressure from the U.S., whose “Fatca” law required banks outside the U.S. to provide tax information about customers who had to pay tax in the U.S. The U.S. negotiated this in bilateral agreements. Then five E.U. countries said if the U.S. could do it, the E.U. should as well.
“The task of automatically exchanging the many billion data that could be relevant for the financial authorities across borders is considered extremely complex. It has already been decided that all sorts of income will have to be reported, including interest, dividends, income from insurance contracts but also capital gains [from sales]. Banks will be involved but also brokers, investment funds and insurers. This will cover the accounts held by natural persons and by trusts and foundations and the natural persons who control them. Finally, guidelines on implementation and specific details on the safe transfer of data were worked out.” —Frankfurter Allgemeine Zeitung
(Dee GRISS ta oont bed OY tend sta SHTOY ah cone fah RENTS inn DEUTSCH lonned, dee ess yay geg GAY ben hot.)