Automatic Exchange of Information (AEOI) is the agreement on the exchange of information with tax authorities of participating countries to curb tax evasion. In other words, participating tax countries’ tax authorities can expect to receive certain information without having to request for information from overseas tax authorities. The participating countries are expected to collate and share the agreed information amongst participating countries.
The objective of AEOI is to enable the discovery of formerly undetected tax evasion cases so that tax authorities can recover the taxes on income not reported by taxpayers.
52 JURISDICTIONS BELOW UNDERTAKING FIRST AEOI EXCHANGES BY 2017
Anguilla, Argentina, Barbados, Belgium, Bermuda, British Virgin Islands, Bulgaria, Cayman Islands, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Hungary, Iceland, India, Ireland, Isle of Man, Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Netherlands, Niue, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Turks and Caicos Islands, United Kingdom.
48 JURISDICTIONS BELOW UNDERTAKING FIRST AEOI EXCHANGES BY 2018
Andorra, Antigua and Barbuda, Aruba, Australia, Austria, The Bahamas, Bahrain, Belize, Brazil, Brunei Darussalam, Canada, Chile, China, Cook Islands, Costa Rica, Curaçao, Dominica, Ghana, Grenada, Hong Kong (China), Indonesia, Israel, Japan, Kuwait, Lebanon, Marshall Islands, Macao (China), Malaysia, Mauritius, Monaco, Nauru, New Zealand, Panama, Qatar, Russia, Saint Kitts and Nevis, Samoa, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Singapore, Sint Maarten, Switzerland, Trinidad and Tobago, Turkey, United Arab Emirates, Uruguay, Vanuatu.
With AEOI, it is likely that more taxpayers will voluntarily disclose their past tax evasion act to the tax authorities for lighter penalties.
Collation of Information for Sharing
It appears that the participating countries are carrying out the collation of information now on non-resident individuals – bank information and related information. As many tax haven countries participate in the AEOI, taxpayers who have evaded taxes using vehicles in these countries may have to decide if they wish to take the risk of non-disclosure or report their wrongdoing voluntarily.
Voluntarily Disclosure Exercise in view of AEOI
A Tax Advisor Pte Ltd can assist you in voluntary disclosure and mitigate the penalties impose by the Inland Revenue Authority of Singapore (IRAS). We can also help if you have income which is not taxed in any country and wish to recognize the income in Singapore. Just email us and we shall arrange for a meeting with you shortly.