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Peer Review of the Automatic Exchange of Financial Account Information 2023 Update

image of Peer Review of the Automatic Exchange of Financial Account Information 2023 Update

The Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) is a multilateral framework for tax transparency and information sharing, within which over 160 jurisdictions participate on an equal footing. The Global Forum monitors and peer reviews the implementation of the international standards of Exchange of Information on Request (EOIR) and Automatic Exchange of Information (AEOI).

AEOI provides for the automatic exchange of a predefined set of financial account information between tax authorities on an annual basis to assist them in ensuring the correct amount of tax is paid. To ensure the AEOI standard is fully effective, the Global Forum carries out a review of each jurisdiction’s domestic and international legal frameworks to ensure they are complete, as well as a review of the effectiveness of their implementation of the standard in practice.

This report presents the latest conclusions of the peer reviews of the legal frameworks put in place by jurisdictions to implement the AEOI standard. It supplements the assessments of the legal frameworks and the initial reviews of the effectiveness of their implementation in practice published in 2022, for around 100 jurisdictions that were the first to commit to commence AEOI. This report also contains the results of the Global Forum’s initial peer reviews in relation to the effectiveness in practice of the implementation of the standard by jurisdictions commencing exchanges in 2019.

English Also available in: French

Israel

Israel’s legal framework implementing the AEOI Standard is in place but needs improvement in order to be fully consistent with the requirements of the AEOI Terms of Reference. While Israel’s international legal framework to exchange the information with all of Israel’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of the AEOI Standard. More specifically, the deficiencies relate to the scope of Reporting Financial Institutions, the scope of Financial Accounts and the due diligence procedures to identify Reportable Accounts.

English

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