Automatic Information Exchange and Enhanced Transparency

Working toward a Solution for a Global Compliance Problem

Linda Campbell, PhD, CPA, and Lynn Comer Jones, PhD, CPA

In recent years, the push for broader automatic information exchange and enhanced transparency has risen to the top of the international financial agenda. As governments struggle under economic constraints, base erosion and profit shifting (BEPS) has become a global issue that requires a global solution, according to the Organisation for Economic Cooperation and Development (OECD). Its member countries, along with many other governmental and nongovernmental organizations, recognize the increased opportunities for individuals and entities to evade taxes at the international level; thus, they are motivated to advance the efficiency of international financial information sharing. But there are significant challenges, both domestically and globally, to reaching this goal, including compliance, complexity, and implementation.