Paraguay joins OECD tax transparency initiative

Paraguay has joined an OECD initiative established to help boost transparency and combat cross-border tax evasion.

The country inked the Paris-based group's Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Paraguay follows in the footsteps of Peru. On Monday the OECD announced an agreement signed with Peru would enter into force on September 1.

"Paraguay's decision to sign the multilateral convention marks an important step in joining the global fight against tax evasion," OECD secretary general Angel Gurría said during a signing ceremony with Paraguay's finance minister Lea Giménez Duarte on the margins of the annual OECD Forum and Ministerial Council Meeting. "It sends a clear signal of determination to stamp out offshore tax evasion and move forward decisively on tax transparency."

The convention also dovetails with other OECD financial information-sharing initiatives.

Paraguay and Peru are among 121 jurisdictions that have signed the convention. Other signatories in the region include Uruguay, Panama, Saint Kitts and Nevis, Saint Lucia, Jamaica, Cayman Islands, Colombia, Chile, Argentina, Mexico and Brazil.

Pictured: OECD secretary general Angel Gurría and Paraguay's finance minister Lea Giménez Duarte