As of July 2015 [updated], 53 lawyers had signed the automatic exchange of information agreement; [7] As of July 2016 [updated], 83 jurisdictions had signed the agreement. [6] Their objective is to combat tax evasion. The idea was based on the implementation agreements of the FATCA (US Foreign Account Tax Compliance Act) and its legal basis is the Convention on Mutual Assistance in Tax Matters. 97 countries have signed an implementation agreement and others intend to sign it at a later date. The first report took place in 2017, many of the others from 2018. Transparency groups have reacted in different ways, with some criticizing the way developing countries have been (not) considered and involved. [23] Collecting and providing information can be so costly and difficult for developing countries to measure. Instead of offering a period of non-reciprocity during which developing countries could simply obtain financial data, the only mention of non-reciprocity agreements is the supply of tax havens. [23] The CRS MCAA determines what information will be exchanged and when. It is a multilateral framework agreement.

A specific bilateral relationship under the MCAA CRS only takes effect if the two jurisdictions have brought the Convention into force, submitted the necessary notifications in accordance with Section 7 and presented each other. OECD initiatives have made it clear that the international community will not tolerate harmful tax practices in tax havens that deplete countries` tax bases. This happens naturally when the people of this country invest in tax havens. The hope is that the implementation of the MCAA and the various penalties and sanctions will lead to the downfall of many avoidance systems in practice. As of 4 June 2015, 61 lawyers have signed the MCAA with a number of other countries that have committed to the agreement to ensure that the majority of the international community strongly supports the OECD in the fight against tax evasion. This means that any jurisdiction can negotiate and define its own reporting accounts in its agreement. [Citation required] As more than 100 legal systems have committed to exchanging information under the CRS, exchange relationships between legal systems are generally based on the Multilateral Convention on Mutual Assistance in Tax Matters (Convention), in which more than 100 legal systems participate, and the Multilateral Agreement on the Multilateral Authority for DCS (CRS MCAA), based on Article 6. Jurisdictions may rely on a bilateral treaty such as a double taxation treaty or a tax information exchange agreement.

In addition, a specific exchange of CRS will be organised on the basis of the relevant EU directive, EU-third country agreements and bilateral agreements such as the UK-CDOT agreements. As of October 2014[Update], 51 countries had signed the Multilateral Agreement on Administrative Authorities (MCAA) to automatically exchange information on the basis of Article 6 of the Convention on Mutual Assistance in Tax Matters[5]. [6] For example, the implementation of an agreement between the Government of the Republic of South Africa and the Government of the United States of America for the implementation of FATCA (U.S. Accountability Act) is an important springboard for South Africa to the automatic exchange of information within the meaning of the CRS. . . .