Asia-Pacific nations to cooperate on tax

22nd December 2014

MGI World night cityscape image

Tax harmonisation across the Asia-Pacific region moved a step closer in December after nation states agreed to closer cooperation.

The 44th annual Study Group on Asian Tax Administration and Research (SGATAR) showed strong appetite for cross-border tax collaboration and a taskforce is to be established to further this aim. It will support collaboration on tax issues and help create robust tax systems in each jurisdiction, the Australian Taxation Office said in a statement after the event in Sydney.

“This taskforce will help the 17 SGATAR countries more effectively work together as they address issues facing us all, including profit shifting by multinationals,” ATO commissioner Chris Jordan said. Previously the members met once a year, but the taskforce offers year-round support to members, he explained.

It comes against a backdrop of OECD and G20 efforts on information sharing and transparency in tax systems.

“Globally, there is powerful and unprecedented international collaboration to ensure taxes are paid where profits are earned,” added Mr Jordan. “This taskforce will give administrations in the Asia-Pacific a platform to play a significant role and contribute to international forums, such as the OECD.”

The taskforce will also be used to coordinate information sharing, cross-jurisdictional compliance action and get support to implement important initiatives such as automatic exchange of information.

The meeting saw technical working groups on base erosion and profit shifting, the operation of multinational entities, and seamless exchange of information and the use of bulk data.

Members of the group: Australia, Cambodia, People’s Republic of China, Hong Kong SAR, Indonesia, Japan, Republic of Korea, Macao SAR, Malaysia, Mongolia, New Zealand, Papua New Guinea, The Philippines, Singapore, Chinese Taipei, Thailand, Vietnam. Combined these countries account for more than a quarter of world GDP, with this expected to rise to 35 per cent by 2030.

Read more on Industry news and Asia, Australasia

MGI World New guide for Doing Business in India

Do you have clients with business in India? Keep them up-to-date with the NEW 2021 Guide for Doing Business in India

23rd February 2021

Looking to do business in India? MGI Asia member firm C.R. Sharedalal & Co., based in Gujarat,...

MGI World India map with the colours of India flag and text overlaid

Looking for a round-up of India’s annual budget? MGI Worldwide CPAAI firms provide key insights into the India Union Budget 2021-2022

19th February 2021

India's much-awaited annual budget was presented by Finance Minister Nirmala Sitharaman on 1...

MGI World Print screen of Tambakad & Goil MENA Success Story - first page section

A successful collaboration between MGI Worldwide CPAAI members in India, Singapore and the UAE has helped Indian start-up expand its business!

8th February 2021

MGI Worldwide CPAAI members B.M. Tambakad, partner at Tambakad & Goil in India, Imran Assan,...