OECD'S Reporting Standard: Collateral Damage

The elimination of tax evasion is a laudable objective. Governments miss out on revenue if assets are moved to other jurisdictions to evade taxes, and the impact is greater in poorer countries. 

However, it is reasonable to ask whether international efforts for the automatic exchange of information (AEOI) strike an appropriate balance between the objective of eliminating tax evasion and the legitimate concerns of individuals concerning their privacy and safety. 

The use of planning techniques to lawfully minimise taxation combined with honest tax reporting is very different from illegally hiding assets and income to avoid accurately reporting to tax authorities. However, those who pay higher tax rates may be forgiven for begrudging those with the resources to structure their affairs utilising lower tax jurisdictions, potentially only further increasing the substantial proportion of global wealth held by a tiny proportion of the population. The Tax Justice Network,