The OECD has unveiled a new single global standard for the automatic exchange of information between tax authorities worldwide. The standard calls on jurisdictions to obtain information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis. 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 OECD will formally present the standard for the endorsement of G20 finance ministers during a 22–23 February meeting in Sydney, Australia. This reporting standard appears to be an extension of the US’s Foreign Account Tax Compliance Act (“FATCA”) which was introduced in the US to reduce overseas tax evasion by US persons. Ireland and the UK concluded intergovernmental agreements with the United States to implement FATCA in 2012.