The Roots of Legal Problems Arising in the Course of Automatic Exchange of Information in Tax Matters Between the EU and Russia

Abstract

This article is devoted to the roots of material and procedural legal problems arising in the course of the automatic exchange of information between the European Union (EU) and Russia. This matter is topical since automatic exchange of information is a method of cooperation between tax authorities from different countries that is new and rapidly developing. From our point of view, it is high time to discuss some of the legal problems that are inherent in automatic exchange of information. As far as we can see, the fundamental problems are: (1) th problem of choosing an appropriate legal basis for automatic exchange of information and (2) the problem of the international standards for automatic exchange of information developed by the Organisation for Economic Co-operation and Development (OECD) being implemented to differing extents in the national legislation of different countries. In this article we suggest ways of solving the aforementioned problems in order to make automatic exchange of information between the EU and Russia more comfortable at the intergovernmental level. The solution of these problems will help to concentrate on another issue – the problem of protecting taxpayers’ rights, primarily the right to confidentiality, which is beyond the scope of this article but still very important in the light of the enhancement of global tax transparency.