Latin America's Vital Efforts in Tax Transparency
Published on May 30, 2024, by the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum), Tax Transparency in Latin America 2024 shows how Latin American countries reported identifying at least EUR 27.8 billion in additional revenue since 2009, through exchange of information on request (EOIR), offshore tax investigations, automatic exchange of financial account information (AEOI) and related voluntary disclosure programmes.In an era of evolving financial landscapes and increased scrutiny on tax compliance, Latin American countries have emerged as front-runners in the pursuit of tax transparency. The Tax Transparency in Latin America report sheds light on the remarkable progress made by these nations, showcasing their commitment to combatting tax evasion, corruption, and other financial crimes through transparency and exchange of information for tax purposes.
Progress in Implementation
Latin American countries have made significant strides in implementing tax transparency standards, as highlighted in the Tax Transparency in Latin America 2024 report. Between 2019 and 2023 alone, these nations reported EUR 862 million in additional revenue, stemming from 2,964 exchange of information (EOI) requests. Additionally, the utilization of automatically exchanged information supported tax activities and revenue collection, with at least EUR 118.9 million identified between 2018 and 2023. Such tangible outcomes underscore the efficacy of Latin America's efforts in bolstering tax transparency and mobilizing domestic resources.
Enhanced Collaboration and Compliance
Enhanced collaboration and compliance are a cornerstone of Latin America's tax transparency journey. Eight out of ten countries received satisfactory ratings in the second round of EOIR peer reviews, demonstrating a commitment to meeting international standards. Moreover, efforts to build capacity and expertise are evident, with 7,957 officials trained on EOI between 2020 and 2023. These initiatives signify a collective endeavor to strengthen the region's capacity in handling EOI and foster a culture of compliance among stakeholders.
Exploring New Frontiers
Latin American countries are actively exploring new avenues to expand the use of exchanged information. Six jurisdictions are participating in a pilot project on the broader use of treaty-exchanged information, leveraging international frameworks and domestic laws. This forward-thinking approach reflects Latin America's commitment to continuous improvement and harnessing the full potential of tax transparency standards.
Conclusion
As the Tax Transparency in Latin America 2024 report demonstrates, Latin American countries have made remarkable strides in the pursuit of tax transparency. The launch of this report marks a milestone in the region's journey towards combatting tax evasion and mobilizing domestic resources for development. With strong progress achieved and a commitment to ongoing collaboration, Latin America is poised to shape a more transparent and equitable financial future for all.
