Trinidad and Tobago Joins OECD Anti-Tax-Evasion Pact to Tackle Illicit Financial Flows

On November 7, Trinidad and Tobago became the 149th jurisdiction to join the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters, a significant international effort aimed at curbing tax evasion and avoidance.

The Caribbean nation formalized its participation in the OECD’s leading anti-tax-dodging initiative at a signing ceremony held at the OECD headquarters in Paris.

By joining this treaty, Trinidad and Tobago will now be able to share tax-related information with 148 other signatory jurisdictions, including “all major financial centres,” according to the OECD. The convention offers a broad framework for international cooperation in tax enforcement, enabling the exchange of information upon request, spontaneous information sharing, cross-border tax examinations, and even assistance with tax collection.

According to the OECD, “the convention is also a powerful tool in the fight against illicit financial flows and is a key instrument for the implementation of the transparency standards of the OECD/G20 BEPS Project.” This highlights the convention’s role in advancing the transparency objectives established by the OECD and G20 under the Base Erosion and Profit Shifting (BEPS) Project, which targets corporate tax evasion and profit shifting.

Trinidad and Tobago’s accession follows Algeria’s entry in October, which made it the 148th signatory to the convention. The Caribbean nation’s commitment underscores a broader global trend toward enhanced tax transparency and international cooperation in combating financial misconduct. 

By fLEXI tEAM