The Commonwealth Finance Ministers Meeting that took place at Lima, Peru, saw nations agreeing on better management and full reciprocity in information related to tax evaders. In his address to the meeting, Indian Finance Minister, Arun Jaitley emphasized the need to ensure that the Common Reporting Standards on Automatic Exchange of Information are implemented globally on a fully reciprocal basis as this would be a key to prevent international tax evasion and avoidance”.
A multilateral agreement was signed in June this year under the Common Reporting Standard proposed by the OECD. Under the Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters, all signatories are required to immediately exchange information with each other regarding the status of individuals messing with their respective tax laws and pushing black money into tax havens. The Common Standards will be implemented in stages beginning from 2017.
With many tax havens also a part of the deal, hopefully tax evasion will finally lay down its ugly head.