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| Exchange of Information on Request | |
|---|---|
| Name | Exchange of Information on Request |
| Type | International tax cooperation mechanism |
| Parties | Organisation for Economic Co-operation and Development members and other jurisdictions |
| Established | 2009 (as part of OECD initiatives) |
| Related | Multilateral Convention on Mutual Administrative Assistance in Tax Matters, Common Reporting Standard, Foreign Account Tax Compliance Act |
Exchange of Information on Request
Exchange of Information on Request is an international mechanism enabling one jurisdiction to ask another jurisdiction for specific taxpayer information, used in taxation, law enforcement, and regulatory contexts. It complements instruments such as the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the Common Reporting Standard, and bilateral tax treaties involving entities like the Organisation for Economic Co-operation and Development, the European Union, and the United States Department of the Treasury. The procedure links multinational bodies such as the International Monetary Fund, the World Bank, and the Financial Action Task Force with national authorities including the Internal Revenue Service, HM Revenue and Customs, Agence Française de Développement, and revenue agencies of Germany, Japan, and Canada.
The mechanism arose from initiatives by the OECD and the G20 to combat cross-border tax evasion, money laundering, and corruption, responding to scandals such as releases by the Panama Papers, the Paradise Papers, and the LuxLeaks disclosures. It operates alongside frameworks like the Multilateral Competent Authority Agreement and bilateral Double Taxation Agreements negotiated under the auspices of the United Nations Committee of Experts on International Cooperation in Tax Matters. Key actors include revenue authorities—Internal Revenue Service, HM Revenue and Customs, Bundeszentralamt für Steuern—and investigative bodies such as the European Anti-Fraud Office and national prosecutors in France, Switzerland, Luxembourg, and Australia.
Legal bases derive from multilateral instruments like the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, regional instruments from the European Union directives, and bilateral tax treaties modeled on the OECD Model Tax Convention. Standards and guidance are set by the OECD and monitored by peer review processes involving the Global Forum on Transparency and Exchange of Information for Tax Purposes, with input from the Financial Action Task Force and the International Monetary Fund. Domestic implementation involves legislation in jurisdictions including United Kingdom, United States, France, Germany, Japan, Switzerland, Singapore, and Netherlands to give effect to treaty obligations.
Requests typically follow formal channels between Competent Authorities—examples include exchanges between Internal Revenue Service and HM Revenue and Customs or between Bundeszentralamt für Steuern and Agence Centrale des Organismes de Sécurité Sociale—and rely on documentation standards promoted by the OECD and the Global Forum. Procedures cover specificity, relevance, and the legal basis of requests, with timelines influenced by bilateral arrangements such as those negotiated by Luxembourg and Switzerland with partner states. Responses may include bank records from institutions like HSBC, Credit Suisse, Deutsche Bank, or corporate records involving entities incorporated under laws in British Virgin Islands, Cayman Islands, Panama, and Delaware.
Safeguards are mandated by instruments like the European Convention on Human Rights where applicable, by domestic laws in United Kingdom, United States, Germany, and by standards from the OECD and the Global Forum. Confidentiality obligations bind recipients such as the Internal Revenue Service and HM Revenue and Customs and are enforced through judicial oversight in courts like the European Court of Human Rights and national supreme courts in France and United States Supreme Court. Protections address personal data handled under rules influenced by frameworks like the General Data Protection Regulation in the European Union and comparable statutes in Canada and Australia.
Critics from advocacy groups including Transparency International, Tax Justice Network, and commentators referencing investigations by International Consortium of Investigative Journalists highlight concerns over bank secrecy in jurisdictions such as Switzerland, Luxembourg, Panama, and Singapore. Practical challenges have been noted by the International Monetary Fund and the World Bank regarding capacity constraints in developing countries, delays observed in exchanges involving British Virgin Islands or Cayman Islands, and legal conflicts arising under domestic constitutions in United States and India. Debates involve balancing rights upheld by the European Court of Human Rights and enforcement priorities of agencies like the Internal Revenue Service and HM Revenue and Customs.
The OECD coordinates standards and peer reviews through the Global Forum, while the United Nations has promoted model clauses via its Committee of Experts on International Cooperation in Tax Matters. Regional bodies such as the European Commission, the African Union, and the Organisation of American States have integrated exchange mechanisms into broader anti-corruption and fiscal transparency initiatives. Multilateral development banks, including the World Bank and the Asian Development Bank, support technical assistance to tax administrations in Kenya, Nigeria, India, and Indonesia.
High-profile use of information requests featured in investigations following the Panama Papers and Paradise Papers, leading to actions by revenue authorities in United Kingdom, Germany, France, Iceland, and Australia. Bilateral exchanges between United States and Switzerland under agreements with Credit Suisse and UBS produced significant enforcement results; similarly, cooperation between Canada and Luxembourg yielded adjustments in transfer pricing cases. Multilateral efforts under the Multilateral Convention on Mutual Administrative Assistance in Tax Matters facilitated recovery of taxes and fines in coordinated operations involving Spain, Italy, Portugal, and Greece.
Category:International tax law