The process of global co-operation between tax authorities to improve offshore compliance is ongoing but has evolved in a piecemeal fashion, therefore possibly creating the opportunity for potential tax loopholes and increased cross-border compliance costs. This could be avoided through implementation of a globally accepted reporting standard backed up by effective automatic exchange of information provisions.
The key date in the fight against offshore non-compliance is April 2009. Under the Presidency of the United Kingdom the leaders from the G20 countries declared that ‘the era of bank secrecy is over’. This was more of a call to action than a fait accompli. The London summit initiated a process which is rapidly leading to the elimination of bank secrecy as a veil behind which tax evaders both individuals and corporations ...
