New year brings new powers for tax information across the globe

CXC Global have warned that contractors are running out of time to get to grips with international tax regulations. The issue highlighted by CXC is the new automatic exchange of tax information, put in place by the OECD, will mean that countries will have considerably more information on potential transgressors than they ever have done in the past.

Under the new ruling, governments will automatically receive much more information on their taxpayers’ overseas finances than ever before. Until now, this data has only been shared on request based on evidence of fraud or another crime taking place.

“Time really is running out for professionals who haven’t got their tax affairs in order,” says Michelle Reilly, managing director of CXC Global. “The new ruling will mean that governments around the world will receive so much more information than they ever have in the past, and consequently are likely to be able to identify considerably more transgressors. It’s absolutely crucial that contractors working overseas have a full grasp of what they need to do to remain compliant with legislation in whatever country they’re working in.

“In the past there may have been a chance that professionals could slip through the net,” she continues, “but with the new Common Reporting Standard being put in place, the chances of that continuing are shrinking rapidly. The new ruling comes into force on January 1st and we’d urge professionals to either educate themselves on international tax legislation, or partner with someone who already has that knowledge.”