Automatic Exchange of Financial Account Information among tax authorities worldwide applies to 2016 data
Today, 108 jurisdictions, including many tax havens (the British Virgin Islands, the Cayman Islands, Gibraltar, Guernsey, the Isle of Man, Liechtenstein, Seychelles, etc.), participate in the automatic exchange of financial account information. The sharing of data on capital gains, account balances, income from the sale of financial instruments and data on the beneficial owners of passive entities (for the year 2016 already) will aid in the effective verification of income tax returns and improve tax transparency. Consequently, tax authorities will no longer have to rely only on spontaneous exchanges of data or journalists revealing secret information and causing scandals the likes of the Panama Papers.