Increase in tax revenue

Certain territories yearn to share information because they want to receive financial information about their own inhabitants and residents abroad.

In other words, certain countries allow AEOI because they prefer to detect non-compliant taxpayers. Tax authorities remain motivated to find undeclared bank accounts, investments, and other financial forms that their tax residents own abroad.

After all, once governments find undeclared assets through AEOI agreements, which means they have the possibility of being taxed and entails more taxes. In addition, the tax authorities also collect back taxes and issue penalties for each year that they did not collect.

Economic stability compared to countries without AEOI

Many nations have built fairly lucrative economies by taking the completely opposite approach to AEOI. In addition, they offer financial stability and privacy at their borders.

However, there is a difficulty. Several of the non-AEOI jurisdictions have few other economic outcomes that make them vulnerable. An example is its financial sectors, which represent an important part (or even the majority) of its Gross Domestic Product.

If non-AEOI countries do not own their own currency, they are subject to correspondent banks around the world to transact in foreign currency. Or, if the entire economy is dependent on the financial sector, the territory could be simply intimidated. This means that regulators are free to impose the territory to do (or adopt) the new measures they suggest.

At Foster Swiss we offer our clients the service of opening personal and corporate offshore bank accounts, since we have more than 600 banking partners around the world.

Among our associates there are only first-rate banking and financial entities and our collaborators are duly authorized agents for each of the services offered. For more information contact us at info@fosterswiss.com