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Asia is Levelling the Playing Field towards more Tax Transparency, but Commitment and Progress are Still Needed to Achieve its Full Potential

IBX-Jakarta. Published last month during the opening sessions of the fourth meeting of the Asia Initiative, held in New Delhi, India, Tax Transparency in Asia 2023: Asia Initiative Progress Report acknowledges progress achieved in Asia between 2009 and 2022 in implementing transparency and exchange of information (EOI) for tax purposes.
All 22 Asian members of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) are implementing the transparency and exchange of information on request (EOIR) standard and 16 of them are committed to starting automatic exchange of financial account information (AEOI) exchanges by 2024.
Overall, Asian members have reported at least EUR 20.1 billion additional revenues linked to EOI since 2009. With more Asian members starting to use EOIR to support domestic investigations and to implement AEOI, additional revenues are expected to be generated in the coming years.
Despite wide adherence to the international standards, their effective use remains uneven in Asia. Many Asian countries are not yet members of the Global Forum and some jurisdictions still make few EOI requests or have not yet committed to implement the AEOI standard by a specific date.
Through the Asia Initiative, launched at the end of 2021 under the Indonesian G20 Presidency, 16 Asian countries had signed up to the Bali Declaration by the end of 2022. Their commitment to achieve full EOI potential for the region has set an example for other countries in the region to follow.
“Established in 2021, the Asia Initiative has a very ambitious plan of activities, covering the implementation of the international tax transparency standards and the use of all forms of administrative co-operation to fight tax evasion and other illicit financial flows. While acknowledging the various levels of EOI maturity across the region, the Asia Initiative aims to benefit all. We look forward to welcoming more Asian members for mutual contributions and benefits to the work of the Initiative,” said the Co-Chairs of the Asia Initiative, Sanjay Malhotra, India, and Suryo Utomo, Indonesia.
The report highlights how Asian member countries benefit from the Global Forum’s capacity-building programme to further implement EOI and mobilise domestic revenues. Thanks to the support of its technical and donor partners, the Asia Initiative will enhance the technical assistance needed in Asia and effectively promote tax transparency across the region.
“The Global Forum will continue to assist Asian members in their steady progress through support to the Asia Initiative and the rollout of our capacity-building programme,” said Zayda Manatta, Head of the Global Forum Secretariat. “We are looking forward to helping further develop local capacities, to achieve more transparent tax systems for the benefit of all Asian countries and their citizens.”

Source: https://www.oecd.org/tax/exchange-of-tax-information/asia-is-levelling-the-playing-field-towards-more-tax-transparency-but-commitment-and-progress-are-still-needed-to-achieve-its-full-potential.htm

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