On October 29th, 2018 at the OECD Headquarters in Paris, the General Director of the Internal Revenue Service of Ecuador, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention) in the presence of the OECD Deputy Secretary-General Ludger Schuknecht. Ecuador is the 126th jurisdiction to join the Convention.
The Convention provides all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection. It guarantees extensive safeguards for the protection of taxpayers' rights.
The Convention is the key instrument for swift implementation of the Standard for Automatic Exchange of Financial Account Information in Tax Matters (CRS). The Standard – developed by the OECD and G20 countries – enables more than 100 jurisdictions to automatically exchange offshore financial account information since September. It is also a powerful tool in the fight against illicit financial flows.
Ecuador has also signed just recently, the CRS Multilateral Competent Authority Agreement (CRS MCAA), which is the prime international agreement for implementing the automatic exchange of financial account information under the Convention. The signing of the CRS MCAA will allow Ecuador to activate bilateral exchange relationships with the other 103 jurisdictions that have so far joined the CRS MCAA.
For more information about the Multilateral Agreements that Ecuador has, contact Juan C. Gallegos partner of Gallegos, Valarezo & Neira.