Greenland joins Global Forum on Transparency and Exchange of Information for Tax Purposes

Tax Alert

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On 29 August 2017, Greenland officially joined the Global Forum on Transparency and Exchange of Information for Tax Purposes. Greenland thereby declared its commitment to implement both the international standard of exchange of information on request and the standard on automatic exchange of financial account information.

On 8 February 2017 Greenland was officially invited to become a member of Global Forum on Transparency and Exchange of Information for Tax Purposes. Prior thereto the Greenland Minister for Finances and Taxes, Aqqaluaq B. Egede, had applied for membership on behalf of the Government of Greenland in a general effort to secure tax revenue and combat international tax evasion. On 29 August 2017, Greenland officially joined the Global Forum.

The Global Forum is hosted by the Organisation for Economic Co-operation and Development (OECD). The Global Forum aims to ensure that all jurisdictions adhere to the same high standard of international co-operation in tax matters. This is done through a monitoring and an in-depth peer review process, through which the Global Forum monitors that its members fully implement the standard of transparency and exchange of information they have committed to implement. It is also done by providing technical assistance to member states.

By joining the Global Forum, Greenland announced its commitment to implement both the international standard of exchange of information on request and the standard on automatic exchange of financial account information. The standard is an important step in order to restrain cross-border tax evasion. Greenland further affirms its participation in the improvement of international tax transparency and the fight against international tax evasion and avoidance.

According to the Global Forum, Greenland will participate in the peer review process and is also committed to start its first automatic exchanges of financial account information in 2018. Thus, the membership entails that Greenland has to implement and apply the OECDs standard for Automatic Exchange of Information for Tax Purposes.