Description

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To the best of my knowledge, FATCA was a significant initiative led by the United States to improve the exchange of information and transparency in tax matters on a global basis. FATCA requires foreign financial institutions to report information about the financial accounts of U.S. persons to the U.S. IRS. In addition, various initiatives to promote transparency and combat tax evasion are being actively pursued by the EU and the OECD. The CRS requires participating jurisdictions to automatically exchange financial account information on an annual basis. DAC8, on the other hand, is part of the EU's efforts to extend the automatic exchange of information to digital platforms. It aims to address tax challenges in the digital economy. Nowadays, the world consists of countries that comply with the policy of exchanging information and those (not many) that fail to comply. The decisions of several countries to adapt to FATCA are in line with existing principles of greater information exchange and transparency, led by the EU and the OECD. Further developments are on the horizon.