“The Convention is designed to promote international cooperation between national revenue authorities to help enforce national tax laws,” said a press release from the Assistant Treasurer.
The Convention allows for the exchange of information and for the mutual assistance in the recovery or pursuit of taxes and related documents.
“Ratifying the Convention underlines the government’s long-standing commitment to international cooperation to help prevent tax avoidance and evasion,” said Bradbury, adding that the Convention will also complement Australia’s existing tax treaty and tax information exchange agreement networks.
The Convention will enter into force for Australia on December 1 2012.
The Convention – developed jointly by the OECD and the Council of Europe – has now been signed by 38 countries. And 21 African countries have also reached consensuson the text of an African Agreement on Mutual Assistance in Tax Matters, indicating broad progress both from the OECD and others in this area of tax cooperation.
