By Dónal Godfrey, Global Forum Secretariat Global Forum on Transparency and Exchange of Information for Tax Purposes Global Forum web site: Transparency and Exchange of Information: The Impact of the Global Forums work on the Internal Market Brussels March 2012

2 Whats at stake in the EU? tax fraud and evasion: distorts the internal market prevents fair competition based on services shifts tax burdens to law abiding taxpayers facilitated by lack of transparency and EOI, i.e. strict bank secrecy and confidentiality laws lax response to requests for information, e.g. delayed or inadequate response = no level playing field inside or outside the EU March 2012

3 Who we are in the EU? New GF members: Latvia (review in 2013) Lithuania (review in 2013) Non-GF members: Bulgaria Romania EU Member States reviewed: Austria (Phase 1) Belgium (Phase 1) Cyprus (Phase 1) Czech Republic (Phase 1) Denmark (Phase 1+2) Estonia (Phase 1) France (Phase 1+2) Germany (Phase 1+2) Hungary (Phase 1) Ireland (Phase 1+2) Italy (Phase 1+2) Luxembourg (Phase 1) Malta (Phase1) Netherlands (Phase 1+2) Slovakia (Phase 1) Slovenia (Phase 1) Spain (Phase 1+2) United Kingdom (Phase 1+2) Undergoing reviews (2012): Finland (Phase 1+2) Greece (Phase 1+2) Poland (Phase 1) Portugal (Phase 1) Sweden (Phase 1+2) March 2012

4 Who we are worldwide? March

5 exchange availability INFORMATION access What we do? The Global Forum standards on transparency and exchange of information can be depicted as a triangle or pyramid: Exchange of information on request with safeguards to protect taxpayers rights and confidentiality. Availability of information particularly accounting, bank and ownership information Access to information and powers to obtain it March 2012

6 Implementing the Standards Global Forum peer reviews o Terms of Reference (3 categories/10 essential elements) o Peer driven exercise (2 Phases) o More than 60 reviews already completed o Determinations and recommendations with 3 tier rating system (Phase 1) + 4 tier rating mechanisms (Phase 2) Report to the G20 analyses o Level of cooperation o Level of compliance o Main deficiencies: number of recommendations… March 2012

7 Number of recommendations made under Phase 1 for each of the reviewed jurisdictions

8 CHANGES IN EUROPE March 2012 All countries commit to lift bank secrecy for exchange of information for tax purposes: Austria, Belgium, Luxembourg and Switzerland. And remove restrictive conditions on bank information requests: Andorra, Estonia and United Kingdom And ensure owners of bearer shares are identified: Andorra, Austria, Belgium, Denmark, Germany, Ireland, Liechtenstein, Luxembourg, Netherlands, Switzerland and United Kingdom And sign TIEAS: Liechtenstein and Monaco And make available accounting information consistent with the standard: Andorra, Austria, Hungary, Netherlands, Liechtenstein and Monaco. And improve exchange of information in practice

9 Whats next now? Supplementary Reports – ongoing Phase 2 reviews – will commence in 2012 starting with the review of Brazil in June 2012 Competent authority meeting – May 2012 Technical assistance – already commenced Report to G20 again in June 2012 (Mexican Presidency) March 2012

10 Global Forum G20 Bribery FATFOECD EUFATCA March 2012 And Later?

11 Under Construction? March 2012

12 Thank You Secretariat to the Global Forum Ph: +33 (0) Visit the EOI Portal at: