Tax exchanges can be considerable headaches for many companies as they strive to streamline their service, but hiding from the authorities is certainly not a good idea. In fact, as the tax reporting season starts, it would be a very good idea to get your affairs in order since there are a multitude of countries who are now sharing information and that is not a good thing if you do not have everything in order.
According to research, no less than 49 countries have already begun automatic exchanges of information and during this year, another 54 are expected to follow suit, taking the total to over 100. Additionally, there are a further 44 countries who have committed to automatic exchange of information. The agreements vary, and while some are multilateral, others are considered as bilateral. And although there are several countries that do not have the necessary resources to carry this out, it appears that we are moving towards increased transparency in the world at all levels.
You can easily assume that your financial information is being shared with other governments and jurisdictions without your consent since the exchange of information is what it purports to be – automatic.
You should make sure that you file the proper forms and documentation as this will avoid the paying of huge liabilities and penalties if you are found to be evading tax. Automatic exchange of information only makes things easier for the government to find you if you try to evade what you owe.
Tax residency is, was, and always will be key in a more transparent world. Establishing the proper personal tax residency, as well as the residency or domicile of the corporation will make the difference from a tax standpoint.
If you would like more information on AEOI or any tax consultation do not hesitate to contact us. Our tax specialists will be able to guide you on the best structure and company domiciliation to make the most of out of your business. Please contact our tax specialist Ms Joceline Caruana M.Acc, MIA, Cert.Tax, CPA on firstname.lastname@example.org.