International Tax Transparency

Perspectives on Tax Law and Policy, vol. 1, p. 1 (Canadian Tax Foundation: Dec. 2020)

4 Pages Posted: 8 Feb 2021

Date Written: December 22, 2020

Abstract

An imbalance exists between tax authorities and taxpayers when it comes to the latter’s financial information. Taxpayers have the information they need to calculate their tax liabilities and file their returns. Tax authorities, on the other hand, tend to have little beyond what is in the tax return. Thus it can be hard for tax authorities to detect non-compliance. The solution? Pass laws to force the taxpayer (or a third party) to provide more and better information to tax authorities. In other words, increase tax transparency. This Article discusses broad international trends that have been the principal catalyst for tax transparency measures such as the Foreign Account Tax Compliance Act, the Common Reporting Standard and Country-by-Country Reporting, which try to inhibit offshore tax evasion and non-compliant international tax avoidance. In a world where data is the “new oil,” tax advisers are increasingly called on to promote and protect their clients’ interests by advising on the collection, use, and disclosure of tax information.

Keywords: tax transparency, tax policy, international tax, common reporting standard, offshore tax evasion

JEL Classification: F23, G38, H26, K34

Suggested Citation

Cockfield, Arthur, International Tax Transparency (December 22, 2020). Perspectives on Tax Law and Policy, vol. 1, p. 1 (Canadian Tax Foundation: Dec. 2020), Available at SSRN: https://ssrn.com/abstract=3753715

Arthur Cockfield (Contact Author)

Queen's University - Faculty of Law ( email )

Macdonald Hall
Kingston, Ontario K7L 3N6 K7L3N6
Canada

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