OECD to hold global tax sharing meeting

The Joint International Tax Shelter Information and Collaboration Network will hold a meeting this week to agree “on collaborative action” in light of the ‘Panama Papers’ revelations.

The Organisation for Economic Co-operation and Development (OECD) has announced that in light of the ‘Panama Papers’ revelations it has been asked to hold a special project meeting of the Joint International Tax Shelter Information and Collaboration (JITSIC) Network.

The meeting will be held tomorrow in the OECD conference centre in Paris and is open to senior tax administrators from the JITSIC countries, which include the UK, US, Korea and China.

The OECD describes the JITSIC as bringing “together national tax administrations that have committed to more effective and efficient ways to deal with tax avoidance”.

The meeting follows a number of other national initiatives targeting tax. The US recently tightened regulations around the way big businesses are taxed following merges and acquisitions and made changes to the tax treatment of management fees. In addition, the UK made revisions to the taxation of carried interest.

Tax administration officials are keen to explore the ways in which they can collaborate in their response to the leak of over 11 million documents, which allegedly show tax avoidance, money laundering and sanctions dodging by multiple entities in multiple jurisdictions.

The OECD said the special project meeting was an opportunity to “explore possibilities of co-operation and information-sharing, identify tax compliance risk and agree collaborative action.”

As a network of tax administrations, committed to sharing intelligence and working together to tackle common risks, the JITSIC Network is well placed to take on this challenge, the OECD added.

JITSIC was originally established in 2004 as the Joint International Tax Shelter Information Centre to combat cross-border tax avoidance. Building on its initial achievements, the JITSIC Network was re-established in 2014 with many new members from across the Forum on Tax Administration (FTA).

The JITSIC Network is open on a voluntary basis to members of the FTA. It provides scope for tax administrations to exchange information and undertake collaborative casework, according to the OECD website.