Ireland is highly compliant with new international tax rules and is one of only three countries worldwide to have the highest levels of transparency in its domestic tax system, according to international financial monitoring body the OECD.
In its latest global forum on transparency and exchange of information report, the influential Paris-based think-tank awarded Ireland, Norway, and Mauritius its highest possible overall rating of ‘compliant’.
Six other countries — Australia, Bermuda, Canada, Cayman Islands, Germany, and Qatar — were ranked ‘largely compliant’ while Jamaica was rated ‘partially compliant’, with the OECD’s global forum set to launch a supplementary report on follow-up measures to ensure a higher level of compliance.
The group of ten peer review reports follows up on initial assessments made in 2011. The ratings for both Canada and Australia have dipped since 2011.
The OECD said both had failed to fully implement new standards on the availability of ownership identity and other accounting information.
Germany was warned over some practical issues with its implementation of the standards.
“Some of Germany’s partners still have pointed to delays and difficulties in terms of communication,” said the OECD.
Regarding Ireland, the OECD’s global forum recommended that bank account information should include the beneficiaries of trusts and not only the names of those who hold more than 25% of the capital of a trust.
Broadly, however, Ireland shone in the latest review – with the OECD noting that the country “ensures the availability of beneficial ownership through a combination of anti-money laundering and tax laws”.
Finance and Public Expenditure Minister Paschal Donohoe welcomed the rating, saying it recognises Ireland’s commitment to high standards on transparency.
“I welcome the decision by the OECD’s Global Forum to award Ireland its highest rating on tax transparency and exchange of information,” he said.
“The outcome of the Global Forum’s review is recognition of Ireland’s continued commitment to the highest international standards in tax transparency.
“Ireland continues to play an active role in global work to reform the international corporate tax system.”
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