They are called multilateral agreements of the competent authorities and establish an international framework to facilitate the automatic exchange of tax information and thus prevent countries from being required to conclude several bilateral agreements. In the case of IRS, Singapore also intends to ensure a level playing field for all major financial centres. Singapore will consider automatically exchanging financial account information with regional jurisdictions that have the necessary safeguards to ensure the confidentiality of the exchange of information and having entered into similar agreements with the financial centres concerned, including Hong Kong and Switzerland. SINGAPORE Has signed two international agreements that will allow the country to automatically exchange tax information with other jurisdictions. Even after the agreements are signed, Singapore – like other signatories – will finally have control over the jurisdictions with which it automatically exchanges information. In general, the following information must be reported under these two bilateral agreements: in the last days of 2018 (28 December), the Turkish President approved the bilateral agreements for the automatic exchange of information by two separate presidential decrees, published in the Official Journal. As a result, Turkey has signed a bilateral agreement on the automatic exchange of financial account information with Latvia and Norway. Both agreements came into force on the signing date of December 20, 2018. In August 2020, more than 2,500 bilateral exchanges were activated for jurisdictions that committed to exchange CBC reports, and the first automatic exchange of CBC reports took place in June 2018. These include exchanges between the 88 signatory states of the EU Competent Authority Convention, the CNC, between EU member states under the 2016/881/EU Directive and between signatories to bilateral agreements to exchange exchange agreements of competent authorities under double taxation agreements or exchange of tax information, including 41 bilateral agreements with the United States.
Legal systems continue to negotiate CBC reporting agreements and the OECD will issue regular updates to clarify things for MNE groups and tax administrations. Their goal is to combat tax evasion. The idea was based on the implementation agreements of the US Foreign Account Tax Compliance Act (FATCA), whose legal basis is the Convention on Mutual Tax Assistance. 97 countries have signed an implementation agreement and others intend to sign it at a later date. The first notifications took place in 2017, many of the others from 2018. The MCAA has been recognized as a multilateral framework agreement for bilateral information exchange cooperation, with 91 signatories (as of 7 June 2017) to the CRS-MCAA member. Bilateral agreements also indicate that discussions on signatories should exchange information on fiscal year 2017 by the end of 2018. Although no information is available, we believe that the Turkish, Latvian and Norwegian tax authorities will probably also exchange information on the 2017 financial accounts.