Expat tax affairs will be opened to greater scrutiny when 93 governments begin exchanging information about bank accounts.
New regulations mean that within two years, tax authorities will automatically exchange information on everyone irrespective of whether tax has been paid or not.
The information to be shared includes account balances, interest, dividends and sales proceeds from financial assets. The collection of this information will start from next year with the first exchange of information in 2017. Exchanges are expected annually.
Until now, tax authorities suspicious of tax evasion would have to request information in writing from overseas banks and institutions.
Now the new rules bring a fundamental change in information sharing between tax authorities.
At first, 58 jurisdictions will be involved including the expat offshore centres of the Channel Islands and Isle of Man as well as EU countries. Bermuda, the Cayman Islands, Liechtenstein, Argentina and South Africa will also take part.
By 2018, a further 35 countries will have joined including Australia, Canada, China, Singapore, Qatar, Monaco and Switzerland.
According to Jason Porter, director at Blevins Franks, the automatic exchange of information should hold no fear for fully transparent taxpayers.
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