Forum On Tax Administration - Moscow Meeting

The Forum on Tax Administration ('FTA'), comprising the heads of tax administrations from 45 economies, met in Moscow for the 8th meeting of the FTA. The final communiqué issued pursuant to the Moscow meeting indicated that the FTA is dedicated to securing high levels of voluntary tax compliance by providing excellent service and effectively addressing tax evasion and aggressive tax avoidance in all its forms, including the underground economy.

The communiqué indicated that the participating tax administrations are committed to undertaking action jointly to improve the effectiveness of tax administrations, address trans-national tax fraud, tax evasion and aggressive tax avoidance.

The Moscow communiqué pointed out that, where the tax administrations are detecting offshore evasion, they will share information with their partner countries. It was pointed out that tools have been developed to enhance the gathering of information and cross-border financial transfers, to understand banking transactions and to identify the beneficial owners of complex structures. Furthermore, Australia, the United Kingdom and the United States of America have secured significant data revealing complex offshore structures, which will be utilised by the revenue authorities in those countries to identify participants in tax evasion and take action against those persons where necessary. It would appear that the three countries concerned will share the information obtained by them to other members of the FTA in accordance with international agreements.

Over the last few years, the number of agreements allowing for the exchange of information between countries has increased, and this has facilitated the greater flow of tax information between states. The FTA has indicated that it will rely more and more on the provisions of the increased network of agreements, allowing for the exchange of information and, also, by providing necessary training to tax auditors to ensure the effective and secure use of information received under the various international agreements. It must be noted that the automatic exchange of information between states has increased, and that this will ultimately become the standard to which various countries will comply under international agreements.

The Moscow communiqué also referred to the OECD's work on Base Erosion and Profit Shifting ('BEPS'), which will initiate an action plan intended to modernise international...