PARIS, AUG 28, 2013: CHINA yesterday signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters at a ceremony at the OECD. All G20 countries have now fulfilled the commitment they made at the Cannes G20 Summit to sign the Convention and move towards automatic exchange of information as the new, global standard.

Tax authorities worldwide are moving from bilateral to multilateral cooperation and from exchange of information on request to automatic exchange of information. The Convention provides a comprehensive multilateral framework for such co-operation and complements other initiatives, such as the standardised multilateral automatic exchange model being developed by the OECD and its G20 partners.

“Today’s signing is both timely and important”, said OECD Secretary General Angel Gurría, “as the G20 has endorsed automatic exchange of information as the new global standard. This Convention provides the ideal instrument to swiftly implement automatic exchange, and to do so with a wide range of partners. This also represents another significant step in the strengthening of collaboration between China and the OECD.”

The Convention also provides for spontaneous exchange of information, simultaneous tax examinations and assistance in tax collection. A valuable tool for governments to fight offshore tax evasion, the Convention also ensures compliance with national tax laws and respects the rights of taxpayers by protecting the confidentiality of the information exchanged. Tax co-operation and compliance are of crucial importance for all countries and citizens - and not only in times of a tight fiscal and budgetary environment.

The G20 has consistently supported the Convention. At their last meeting G20 Finance Ministers and Central Bank Governors stated, “We call on all countries to join the Multilateral Convention on Mutual Administrative Assistance in Tax Matters without further delay”. The OECD, China and other G20 countries are working together to develop the operational platform for the new single global standard for automatic exchange of information which has been endorsed by the G20.