The old JITSIC has been an effective tool in dissecting transactions and providing robust results to revenue authorities following its procedures and expanded audits across multijurisdictions, he said.
The fact that the number of countries involved in JITSIC will expand should cause both taxpayers and their tax advisers to take more notice of the overall global consequences of their tax planning, and the way transactions are going to be scrutinized from both an economic and culture perspective," said Keller.
Countries' competing cultural, political, and economic interests, will combine to make the new JITSIC audits much more intense and complex, so revenue authorities need to sort out proper procedures for information sharing to protect taxpayer privacy and to avoid long and drawn out audits that are inefficient and create significant uncertainty and a resource drain on taxpayers, said Keller.
T]he original JITSIC was narrowly focused on a few countries but remains extremely effective.
If this broadened JITSIC is as effective as the original JITSIC, then it will make a big difference," he added.
It's unclear whether the JITSIC Network's rules of engagement will be the same as those of the original JITSIC, Keller said.