International tax treaty to support cross-border collection

Wednesday, April 7th 2010

An international treaty to help governments ensure their tax laws are enforced has been agreed by the Council of Europe and the Organisation for Economic Co-operation and Development (OECD).

It is hoped the move will tackle cross-border tax evasion, allowing banking information to be shared.

As more countries join the convention, its benefits will become increasingly far reaching.

On May 27th-28th - the OECD's annual ministerial meeting in Paris - the protocol will be opened up for signature in response to G20 leaders' concerns about helping developing countries take advantage of a new cooperative tax.

As well as the exchange of bank information, cross-border assistance of tax collection and simultaneous tax examinations will also be allowed.

"Given its multilateral nature, the convention is a unique instrument to counteract international tax avoidance and evasion," explained Angel Gurria, the secretary-general of the OECD.

The OECD helps to bring the governments of countries together to raise living standards, assist others with their economic development and to support sustainable economic growth.