TAIPEI (Taiwan News) – Taiwan is expected to exchange financial information with a number of countries in September of next year as part of the Common Reporting Standard (CRS) program designed to combat tax evasion.
Developed by the OECD (Organization for Economic Co-operation and Development) in 2014, the CRS calls on jurisdictions to annually share information regarding financial institutions, accounts, tax matters, and due diligence procedures. The multilateral mechanism was established to help counter tax fraud.
Taiwan is set to implement the CRS later this year, with its first exchange of information to take place next year with Japan and Australia, said Deputy Finance Minister Wu Tzu-hsin (吳自心) on Thursday (July 11). The practice has been adopted by 108 nations, reported the Liberty Times.
According to Wu, the European Union (EU) continues to update its list of non-cooperative jurisdictions, which has prompted tax havens such as the Cayman Islands and the British Virgin Islands to take measures to comply with the EU’s criteria. This indicates a joint anti-tax evasion effort by the international community, which Taiwan should also join, noted Wu.
Data from approximately 47 million accounts have been shared by 90 countries to date, involving a total of 4.9 trillion euros. The scheme has helped rake in 95 billion euros for governments from tax revenue, interest payments, and fines, reported the Liberty Times.