The Model Agreement on Exchange of Information on Tax Matters (TIEA Model) and its Commentary (TIEA Model Commentary) were published by the Organization for Economic Cooperation and Development (OECD) in 2002. Today, the OECD standard is also reflected in Article 26 OECD Model Tax Convention on Income and on Capital (OECD Model) and its Commentary (OECD Model Commentary) as well as incorporated in the United Nations Model Tax Convention (UN Model), the Council of Europe/OECD Convention on Mutual Administrative Assistance in Tax Matters (the CoE/OECD Convention) and European Union (EU) law. The TIEA Model contains specific provisions regarding exchange of information on request, the possibility of declining a request for information, tax examinations abroad, and a confidentiality clause. In addition, it includes provisions of an administrative nature such as allocation of costs associated with the execution of TIEAs and language usage for making and responding to requests. This contribution gives an overview of the main provisions of the TIEA Model with the focus on its content, the specificity of the information request and the application of TIEAs in practice.
The recent introduction of the Directive on Administrative Cooperation in the field of taxation 6 (DAC6) and mandatory disclosure regimes by many jurisdictions have led to a large number of professionals potentially being required to disclose information in relation to their clients’ arrangements. The authors analyse the operation of the various automatic exchange of information regimes which have been introduced in the last five years including the OECD common reporting standards DAC6 and MDR. They set them in their historical context as well as giving a technical analysis of the regimes. They focus on the guidance offered by the Irish and UK tax authorities with reference to other guidance in Europe and beyond, where appropriate.
Tax information exchange agreements are getting prominent in the globalized world; they play a pivotal role in eliminating tax evasion, which is a very big problem for developing countries like India to tackle tax evasion and tax avoidance. Organization for Economic Co-operation and Development (OECD) has implemented an instrument called Tax Information Exchange Agreements (TIEAs) to promote international cooperation in tax matters through exchange of information and also to counter harmful tax practices. The countries facing tax evasion by the taxpayers, i.e., shifting their incomes to tax heavens, can be reduced to a greater extent by negotiating more and more tax information exchange agreements. Keeping all the above-said factors in focus, this paper mainly analyzes the recent developments in the exchange of Tax Information between India and other countries. The paper brings about the important features of Indian tax information exchange agreements, Indian Network of tax information exchange agreements, Historical developments, Peer Review process, Steps in tax exchange of tax information, and overall mechanism. The paper concludes that Tax Information Exchange Agreements are significant to tackle tax evasion and harmful tax practices in India, and there must be a sound policy of negotiating tax information exchange agreements with more tax heavens and countries.
This article presents a study of the retroactive application of tax information exchange agreements (TIEAs) in Brazil, Colombia, South Africa and Uruguay, with a view to articulating policy recommendations for similar emerging economies. Contracting states should adopt clear rules in their TIEAs as regards their temporal application. In the absence of such rules, contracting states should abstain from applying a TIEA retroactively. The authors further recommend that legislatures adopt clear rules in domestic law governing whether a TIEA should apply to pending proceedings at the time of signature of the TIEA. Countries wishing to provide for retroactive effect in respect of information that is still open for review under statute of limitations rules may include provisions to reflect this both in domestic law and in the TIEA itself. It is recommended that countries carefully review and agree whether exchanges of information should be restricted for cases that already have been subject to a reassessment proceeding and, thus, are closed, even when the statute of limitations period has not lapsed. Legislatures in emerging countries should also take a position in domestic law on the issue of whether taxpayer rights may be limited as the result of a retroactive TIEA application.
This is a technical explanation of the Convention and the Protocol between the United States and the Italian Republic signed on August 25, 1999 (the "Convention" and the "Protocol"). References are made to the Convention between the United States and Italy for the Avoidance of Double Taxation with Respect to Taxes on Income and the Prevention of Fraud or Fiscal Evasion, signed on April 17, 1984 (the "prior Convention"). The Convention replaces the prior Convention. Negotiations took into account the U.S. Treasury Department's current tax treaty policy, as reflected in the U.S. Treasury Department's Model Income Tax Convention of September 20, 1996 (the "U.S. Model") and its recently negotiated tax treaties, the Model Income Tax Convention on Income and on Capital, published by the OECD in 1992 and amended in 1994, 1995 and 1997 (the "OECD Model"), and recent tax treaties concluded by Italy. In connection with the negotiation of the Convention and the Protocol, the negotiators developed and agreed upon a Memorandum of Understanding. The Memorandum of Understanding is a statement of intent setting forth a common understanding and interpretation of certain provisions of the Convention and Protocol reached by the delegations of the United States and Italy acting on behalf of their respective governments. These understandings and interpretations are intended to give guidance both to the taxpayers and the tax authorities of both Contracting States in interpreting the relevant provisions of the Convention and Protocol. The Technical Explanation is an official guide to the Convention and Protocol. It reflects the policies behind particular Convention and Protocol provisions, as well as understandings reached with respect to the application and interpretation of the Convention and Protocol. References in the Technical Explanation to "he" or "his" should be read to mean "he or she" and "his or her."
The financial crisis of 2008 and the emergence of various scandals around the world sparked a movement towards greater transparency with international exchange of information in tax matters. Fully revised and updated, this book considers the emergence of a new global standard, the automatic exchange of information. Providing a comprehensive overview of the main developments, it analyses the structure and content of the various existing instruments and models, taking into account the most up to date developments.
This is a technical explanation of the Convention between the United States and the United Kingdom of Great Britain and Northern Ireland, signed on July 24, 2001 (the "Convention"), as amended by the Protocol between the United States and the United Kingdom of Great Britain and Northern Ireland, signed on July 22, 2002 (the "Protocol"). References are made to the Convention between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed on December 31, 1975, as amended by Protocols signed on August 26, 1976, March 31, 1977, and March 15, 1979 (the "prior Convention"). The Convention replaces the prior Convention. In connection with the negotiation of the Convention, the delegations of the United States and the United Kingdom developed and agreed upon an exchange of diplomatic notes (the "notes"). The notes constitute an agreement between the two governments that shall enter into force at the same time as the entry into force of the Convention. These understandings and interpretations are intended to give guidance both to the taxpayers and to the tax authorities of the Contracting States in interpreting the Convention. The notes are discussed below in connection with relevant provisions of the Convention. In connection with the negotiation of the Convention, the delegations of the United States and the United Kingdom developed and agreed upon an exchange of diplomatic notes (the "notes"). The notes constitute an agreement between the two governments that shall enter into force at the same time as the entry into force of the Convention. These understandings and interpretations are intended to give guidance both to the taxpayers and to the tax authorities of the Contracting States in interpreting the Convention. The notes are discussed below in connection with relevant provisions of the Convention. The notes provide that the United States and the United Kingdom will consult together at regular intervals regarding the terms, operation and application of the Convention to ensure that it continues to serve the purposes of avoiding double taxation and preventing fiscal evasion. The first such consultation will take place no later than December 31st of the fifth year following the date on which the Convention enters into force in accordance with the provisions of Article 29 (Entry into Force). Further consultations shall take place thereafter at intervals of no more than five years. The notes also provide that the United States and the United Kingdom will conclude further protocols to amend the Convention, if appropriate.
