Costa Rica has notified the Organization for Economic Cooperation and Development (OECD) that it has ratified the Convention on Mutual Administrative Assistance in Tax Matters, the most comprehensive multilateral agreement available for tax-cooperation and exchange of information.

The Convention was developed jointly by the OECD and the Council of Europe, and has been open to all countries since June 1, 2011. It helps counter cross-border tax evasion and ensures compliance with national tax laws, while respecting the rights of taxpayers. G20 Leaders strongly encouraged all jurisdictions to sign the Convention at their Los Cabos Summit in 2012.

Costa Rica is strengthening its engagement with the OECD including in the area of taxation. “Costa Rica continues to make good progress in transparency and exchange of information,” said OECD Secretary General, Angel Gurria. “Ratifying the Multilateral Convention represents another important step forward. I congratulate Costa Rica for being the first country in Central America to ratify it and I hope other countries in the region will follow their lead.”

Costa Rica’s Minister of Finance, Edgar Ayales, meeting with the Secretary-General, noted that, “The ratification of this Convention is another milestone in Costa Rica’s longstanding commitment towards tax transparency. Through the application of this Convention and recent amendments to our domestic legislation, we look forward to contributing in the cross-border fight against tax evasion.”

The Convention provides a multilateral basis for a wide range of administrative assistance, including information exchange on request, automatic exchange, simultaneous tax examinations and assistance in the collection of tax debts. The Convention will enter into force for Costa Rica on August 1, 2013.

Source: Tax-News.com