Automatic exchange statistics as of June 2019

Automatic exchange statistics as of June 2019

Organisation for Economic Co-operation and Development (OECD) has published Secretary-General Report to the G20 Finance Ministers and Central Bank Governors as of June 2019 which, amongst other matters, contains statistic data of the process of automatic exchange of  information on financial accounts.

The mentioned report has been presented on the G20 Finance Ministers and Central Bank Governors’ meeting held at 8 and 9 June 2019 in Fukuoka, Japan. According to this report over 90 of jurisdictions which participate in automatic exchange under Common Reporting Standard (CRS) have been engaged in 4 500 bilateral exchange relationships since 2018. They have transferred information on 47 million accounts of total value of around 4,9 trillion Euro. 

The statistics mentioned above provides an evidence that the exchange of information under CRS is the largest exchange of tax information in history. According to actualized results of calculations, automatic exchange enabled the participating states to collect 95 billion Euro of additional revenue in a form of taxes, interest and penalties, and this amount exceeds the results of the same calculation as of November 2018 by 2 billion Euro.

Also, one more indicative aspect of automatic exchange’s effectiveness is the amount of money held in international financial centers. According to OECD’s information, during the period from 2000 to 2008 such amounts have been substantially increasing in more than 40 key international financial centers and reached its maximum point of 1.6 trillion USD at the middle of 2008.

During last 10 years this number decreased by 34%, which corresponds 551 billion USD outflow from particular jurisdictions caused by strengthening of international transparency standards. One of significant components of strengthening of transparency is the implementation of automatic exchange, which is considered to be the cause of outflow of the most of money from the international financial centers (approximately 2/3 of its total amount, i.e. from 20% to 25% according to preliminary calculations).

As it was stated by Angel Gurria, Secretary-General of OECD, such results reflect effectiveness of automatic exchange at its very first stages. Consequently, tax revenues of states which use the data obtained during automatic exchange will be increasing, and the suppression of concealing incomes for purposes of tax evasion will continue.

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