THE ORGANISATION for Economic Co-operation and Development (OECD) has outlined the tenets of transparent tax systems, in a report commissioned by the G8 group of nations.
The OECD’s publication outlines the major tenets that the countries would need to co-operate and share information, highlighting the need for liaison on legislation, agreeing on the scope of information to be shared with other countries, a common legal basis for exchanging information and more aligned IT standards.
The group, which is based in Paris, has been tasked with helping to show how the world’s advanced economies can minimise tax evasion by exchanging information.
David Cameron has recently attempted to involve British overseas territories in a potential agreement, insisting that less opaque systems are necessary to prevent the tax system being gamed.
The report promotes the convention on mutual assistance in tax matters and a European pilot project, to which all of the UK’s crown dependencies, including Jersey and Guernsey, have agreed.
Angel Gurria, secretary general of the OECD, said: “tax systems must be fair and be seen to be fair”, adding that both security and cost efficiency were important aspects for a potential system of information sharing.
The G8 is currently meeting in Northern Ireland.