THE Assistant Treasurer David Bradbury said that Australia has ratified the Convention on Mutual Administrative Assistance in Tax Matters. The Convention is designed to promote international cooperation between national revenue authorities to help enforce national tax laws.

It has been developed jointly by the Organisation for Economic Cooperation and Development (OECD) and the Council of Europe, which allows for the exchange of taxpayer information, as well as for assistance in the recovery or pursuit of taxes and for the service of documents.

The Convention provides for all possible forms of administrative cooperation between its parties, while respecting the fundamental rights of taxpayers, and will complement Australia's existing tax treaty and tax information exchange agreement networks.

Ratifying the Convention underlines the Government's long-standing commitment to international cooperation to help prevent tax avoidance and evasion. The G20 has strongly encouraged all jurisdictions to sign the Convention. Till date it has been signed by 38 countries including Australia.

Australia's instrument of ratification has been lodged with the OECD and the Convention will enter into force, for Australia, on 1 December 2012. And 21 African countries have also arrived at consensus on the text of an African Agreement on Mutual Assistance in Tax Matters, demonstrating broad progress both from the OECD and others in this area of tax cooperation.