Co-operation between tax administrations is critical in the fight against tax evasion and protecting the integrity of tax systems.
A key aspect of this co-operation is the Automatic Exchange of Information.
It sets out the financial account information to be exchanged, the financial institutions that need to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
The AEOI Standard is therefore built on three key components:
- a domestic legal framework that requires financial institutions to collect and report the information;
- exchange agreements between all Interested Appropriate Partners;
- the systems and processes for the information to be reported and exchanged effectively in practice, including to ensure compliance by Financial Institutions.
