OECD: Tax transparency in Latin America 2022
A report on recent progress in tackling tax evasion and other financial crimes through transparency and exchange of information
Report on progress in tackling tax evasion through transparency, exchange of information
The Organisation for Economic Cooperation and Development (OECD) on 3 May 2022 published a report entitled Tax Transparency in Latin America 2022 showcasing the region's recent progress in tackling tax evasion and other financial crimes through transparency and exchange of information (EOI) for tax purposes.
As explained in the OECD release, a recent study documents very high rates of individual (personal) and corporate income tax evasion in the region (44% and 58% on average respectively), and a significant share of Latin America’s wealth is estimated to be held offshore, depriving its governments of billions of tax revenue. Furthermore, the average tax-to-GDP ratio for the 16 countries covered in the report remains low in international comparison, at 19.8% compared to the OECD average of 33.5% for 2020.
Despite the major achievements in recent years described in the report, the OECD found that Latin American countries are not yet making full use of EOI and work remains to be done. In addition, beneficial ownership frameworks in the region are in early stages of implementation, and wider use of treaty-exchanged information to address other financial crimes remains generally challenging.
To address these pressing issues, the report presents strategies and action-oriented recommendations underlining the role of transparency and international co-operation in helping governments fight tax evasion and other illicit financial flows.
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