A Government Perspective Dealing with Automatic Exchange of Information Vienna, 9th February 2016

A GOVERNMENT PERSPECTIVE CHALLENGES OECD WORK NATIONAL IMPLEMENTATION OUTLOOK QUESTIONS

Overall approach No separate consideration CRS CbCR DAC DOMESTIC

Challenges / Fundamental issues ! DATA PROTECTION DATA SECURITY POLITICAL IMPACT KEY REQUIREMENTS

Data protection MCAA in conjunction with the Convention provides already high confidentiality standard But: different national requirements have to be met Most helpful: Peer review process as validation step for country participation in CRS Data exchange + Assistance for Developing Countries

Data security Another important aspect of the confidentiality requirement Confidence: public perception and recent scandals Encounter false ideas and the cloud paradox - Lessons learned for the here proposed shared system for secure data storage

Political impact Information Exchange is always sensible issue – link to confidentiality Budget management risks - Cost benefit evaluation Rising awareness of global advantages – tool for low developed countries

Key requirements Simplicity – high degree of standardization - easy to handle Reduce red tape for both government and business / taxpayer Long lasting solution – easily adaptable for similar future applications

Key characteristics – Development Aid Policy Low developed countries benefit particularly from AEOI (CbCR and CRS) Take into account the challenges of LDC – easy implementation, easy use Address at an early stage the possible conflict between the aforementioned goals and the complexity of confidentiality requirement

OECD / GF – Work Section 3 MCAA CbCR 4. The Competent Authorities will automatically exchange the CbC Reports through a common scheme in Extensible Markup Language. 5. The Competent Authorities will work towards and agree on one or more methods for electronic data transmission, including encryption standards, with a view to maximising standardisation and minimising complexities and costs and will notify the Co-ordinating Body Secretariat of such standardised transmission and encryption methods. Goal: Common XML-schema and Common Transmission System

OECD / GF – Work Work on xml-scheme well advanced April 2016 (expected): Agreement between the OECD and the supplier for the provision of the CTS Since 2015: peer review of Data-Confidentiality rules of all participating Countries (CRS)

OECD / GF – Work Section 3 MCAA CbR 4. The Competent Authorities will automatically exchange the CbC Reports through a common scheme in Extensible Markup Language. 5. The Competent Authorities will work towards and agree on one or more methods for electronic data transmission, including encryption standards, with a view to maximising standardisation and minimising complexities and costs and will notify the Co-ordinating Body Secretariat of such standardised transmission and encryption methods. Goal: Common XML-schema and Common Transmission System

OECD / GF - Work France GB CNN (between EU) Gateway CTS ( e.g. ETrustEx) USA Japan China Italy

National Implementation High level AEOI Project Ministry of Finance Federal Tax Office 16 State-level Tax admirations IT - Agency Comprehensive approach/ one fit all solution: CRS CbR DAC...

Outlook Governments likley open to new ingenious easy to handle solution Use political momentum: highlight advantages for developing countries Sufficient lead time required Learn from the current implementation process to align both business and government expectations

Questions ?