In May 2014, 47 countries tentatively agreed on a “common reporting standard,” officially designated as the standard for the automatic exchange of financial account information: an automatic exchange of information on residents` assets and income in accordance with the standard.  Among the 34 OECD countries, Argentina, Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabia, Singapore and South Africa.  OECD initiatives have made it clear that the international community will not tolerate harmful tax practices in tax havens that deplete countries` tax bases. This is done naturally when the people of this country invest in tax havens. The hope is that the implementation of the MCAA and the various sanctions and sanctions will lead to the decline of many circumvention measures in practice. On 4 June 2015, 61 countries signed the MCAA, with a number of others committed to the agreement to ensure that the majority of the international community strongly supports the OECD in the fight against tax evasion. Transparency groups have reacted in different ways, and some criticize the fact that developing countries have not been considered and involved.  The collection and provision of information can be so costly and difficult for developing countries that it is not possible to participate in the regime. Instead of offering a period of non-reciprocity during which developing countries could simply obtain financial data, the only mention of non-reciprocal agreements is the reception of tax havens.  This means that each jurisdiction can negotiate and determine its own accounts subject to reporting in its agreement. [Citation required] The MCAA implements the OECD standard for the automatic exchange of financial information. It is based on Article 6 of the OECD Multilateral Convention on Mutual Tax Assistance (multilateral convention), which stipulates that two or more parties can agree on the automatic exchange of information.
Even if the MCAA is signed on a multilateral basis, effective exchange of information will take place bilaterally. The MCAA requires the competent authorities of the participating jurisdictions to automatically collect and exchange tax information imposed by OECD IRS. The CRS MCAA provides details of the information that will be exchanged and when. It is a multilateral framework agreement.