Developing countries and the automatic exchange of information standard: A “one‑size‑fits‑all” solution

Sadiq, Kerrie & Sawyer, Adrian (2016) Developing countries and the automatic exchange of information standard: A “one‑size‑fits‑all” solution. Australian Tax Forum, 31(1), pp. 99-129.

View at publisher


Recently, the Organisation for Economic Co‑operation and Development (OECD), at the invitation of G20 countries, developed what it refers to as the new single global standard for the automatic exchange of information (AEOI) between key revenue authorities worldwide. This standard, if adopted by a country, would require the annual AEOI relating to financial accounts obtained from financial institutions and exchanged in a common reporting format or standard. Theoretically, the adoption of the AEOI standard on a global scale would equip all countries to address the illicit flow of money to locations which result in tax avoidance and other forms of non‑compliance. However, the success of the AEOI standard relies on countries to be able to first, collect and supply the information required and second, effectively use and benefit from the information provided to them. This means that such an adoption places an onerous administrative burden on a country and this is arguably especially the case for developing countries which do not have the same level of administrative resources and intellectual capital as developed countries. Studies have revealed that developing countries support the AEOI and view it as an opportunity to address illicit financial flows. However, the implementation of such a regime, according to the OECD, requires a sound legal framework, technical know‑how, infrastructure and personnel capacity. Consequently, developing countries are most concerned about the lack of capacity to:

  • (1) collect the information locally to allow full reciprocal information exchange;

  • (2) analyse the information received, and;

  • (3) deal with information technology.

The purpose of this article is to critically analyse the OECD’s AEOI standard and assess the standard from the perspective of developing countries and emerging economies, including Global Forum members. It does so with the aim of revealing the “unique” administrative and enforcement issues which may arise for those countries and offering possible solutions. These possible solutions offered adopt a case study approach to the Asia‑Pacific region.

Impact and interest:

Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 96106
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: Tax Reform, Automatic Exchange of Information, Developing Countries, Tax Accountability
ISSN: 0812-695X
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100) > Taxation Accounting (150107)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2016 Taxation Institute of Australia
Deposited On: 15 Jun 2016 00:27
Last Modified: 16 Jun 2016 23:27

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page