Cross-border regulatory agreements to manage tax avoidance
Australia has signed a number of agreements with overseas regulatory counterparts aimed at combating tax avoidance and to supervise fund managers operating across borders.
On Friday the Treasurer Chris Bowen announced that Australia and Britain have agreed to an agenda to combat tax avoidance and evasion, with Australia joining a pilot scheme for the multilateral exchange of tax information established by Britain along with France, Germany, Italy and Spain in April 2013.
The pilot will allow automatic exchange of information between the participating countries and is part of the establishment of new standards for the exchange of tax information.
Australian Treasurer, The Hon Chris Bowen MP said the agreement was consistent with Australia’s commitment to the exchange of information maintain the integrity of the international tax system and would be a key part of its presidency of the G20 group of nations in 2014.
The agreement follows the Australian Securities and Investments Commission (ASIC) signing co-operation agreements with 29 European Union (EU) securities regulators aimed at supervising funds managers working across international borders.
The agreements are necessary to allow Australian funds managers access to European markets to promote and manage Alternative Investment Funds (AIFs), such as hedge funds, private equity funds and real estate fund, in the EU.
The agreements were struck between ASIC and the European Securities and Markets Authority (ESMA), on behalf of EU regulators, and were approved in May this year but signed by ASIC just over a week ago and were applicable from July 22.
ASIC Chairman Greg Medcraft said the agreements created a framework for cooperation and information sharing between ASIC and Europe and ensure fund managers are properly supervised in both locations.
The EU nations that have signed the co-operation agreements with ASIC are: The Netherlands, France, Germany, Ireland, Austria, Portugal, Spain, Romania, Italy, Luxembourg, Cyprus, Czech Republic, Sweden, Finland, Denmark, Latvia, Estonia, Poland, United Kingdom, Bulgaria, Belgium, Greece, Lithuania, Malta, Slovak Republic, Hungary, Iceland, Norway, Liechtenstein.
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