New Multilateral Action To Combat Tax Evasion

In brief

On April 9, the Government of the United Kingdom (UK) announced an agreement with France, Germany, Italy and Spain to develop and pilot multilateral tax information exchange arrangements. Under the agreement, a wide range of financial information will be automatically exchanged between the five countries. The agreement is to help catch and deter tax evaders as well as to provide a template for wider multilateral automatic tax information exchange.

The pilot will be based on the Model Intergovernmental Agreement (IGAs) developed between the five countries and the United States for purposes of the provisions of the US Foreign Account Tax Compliance Act. The intention is to help ensure that international tax evasion is tackled in a way that minimises costs for both businesses and governments.