Brendan Smith
Ceist:58. Deputy Brendan Smith asked the Minister for Finance the progress that has been made on achieving global tax transparency; and if he will make a statement on the matter. [44903/12]
Amharc ar fhreagraWednesday, 24 October 2012
Ceisteanna (58)
Freagraí scríofa
I am pleased to be able to advise Deputy Smith that significant progress has been made in the area of achieving global tax transparency. The Global Forum on Transparency and Exchange of Information was established by OECD member countries and certain other jurisdictions in 2000. The Global Forum was significantly restructured in 2009 and now counts some 110 countries as members. The list of members is still growing.
All members of the Global Forum are committed to meeting the OECD standard in relation to transparency and exchange of information. The OECD standard covers the availability of certain taxpayer information and the ability to access that information and to supply it to another country when a valid request to do so is received— for example, under a Double Taxation Agreement (DTA) or a Tax Information Exchange Agreement (TIEA).
The type of taxpayer information that must be available for exchange covers, in the case of companies for example, the owners of the company and the accounting records of the company. The competent authority for exchange of taxpayer information under a DTA or TIEA (which in the case of Ireland is the Revenue Commissioners or their authorised representatives) must have powers to access information and then must exchange that information when a request is received that meets the conditions for exchange of taxpayer information which are laid down in the relevant DTA or TIEA.
In order to ensure that the OECD standard is being met the legal and regulatory framework (Phase 1 review) and practical experience of exchange of taxpayer information (Combined review) in all members of the Global Forum is currently being reviewed. Since the first review was launched in 2010 the Global Forum has adopted and published the reports of over 60 Phase 1 reviews and over 20 Combined reviews— including the report of the Combined review of Ireland, which was published in January 2011. The reviews published to date contain recommendations as to how the member countries concerned could improve their legal and regulatory framework and practice and there is an effective follow-up programme to ensure recommendations are implemented.
Since 2009 an additional 800 DTAs and TIEAs have been signed and many countries are now signing and ratifying the Joint Council of Europe/OECD Convention on Mutual Administrative Assistance in Tax Matters which also provides a legal basis for exchange of taxpayer information. This increase in the number of instruments to exchange taxpayer information is also changing the “global tax transparency” landscape. The G20 has strongly endorsed the work of the Global Forum and recommended that countries join it. As set out above, it is clear that the Global Forum has made significant progress in achieving global tax transparency.