The Caribbean nation of Dominica has signed the Organisation for Economic Co-operation and Development (OECD) and the Council of Europe’s Multilateral Convention of Mutual Administrative Assistance in Tax Matters (the Convention).
The Convention enables jurisdictions to engage in a range of mutual assistance in tax matters including: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection.
The Convention is used to help implement the Standard for Automatic Exchange of Financial Account Information in Tax Matters (CRS). The CRS, which was developed by the OECD and G20 countries, enables over 100 jurisdictions to automatically exchange offshore financial account information.
Dominica has also signed the CRS Multilateral Competent Authority Agreement (CRS MCAA), committing to implementing the automatic exchange of financial account information.
Dominica becomes the 128th jurisdiction to sign the Convention and the 105th jurisdiction to sign the CRS MCAA.
The Convention is also used to help tackle illicit financial flows and is used to implement transparency standards of the OECD/ G20 Base Erosion and Profit Shifting Project.
In March, Dominica was added to the European Commissions’ blacklist of non-cooperative tax jurisdictions which is used by the EU to tackle risks of abuse and unfair tax competition across the globe
Legislation prohibits EU funds from being channelled or transited through entities in countries on the tax blacklist.