Automatic Exchange Of Information Research Articles

Cybersecurity in Supply Chain Systems: The Farm-to-Fork Use Case

Modern supply chains comprise an increasing number of actors which deploy different information technology systems that capture information of a diverse nature and diverse sources (from sensors to order information). While the benefits of the automatic exchange of information between these systems have been recognized and have led to their interconnection, protecting the whole supply chain from potential attacks is a challenging issue given the attack proliferation reported in the literature. In this paper, we present the FISHY platform, which anticipates protecting the whole supply chain from potential attacks by (a) adopting novel technologies and approaches including machine learning-based tools to detect security threats and recommend mitigation policies and (b) employing blockchain-based tools to provide evidence of the captured events and suggested policies. This platform is also easily expandable to protect against additional attacks in the future. We experiment with this platform in the farm-to-fork supply chain to prove its operation and capabilities. The results show that the FISHY platform can effectively be used to protect the supply chain and offers high flexibility to its users.

Automatic Exchange of Information and the Protection of Taxpayers’ Rights. Towards a New Multilateral Multi-Tiered Architecture

Automatic Exchange of Information and the Protection of Taxpayers’ Rights. Towards a New Multilateral Multi-Tiered Architecture

E-Commerce, Self Assessment System, Tax Knowledge and Automatic Exchange of Information on Tax Avoidance Intentions

This study aims to examine whether or not there is an effect of E-Commerce, Self Assessment System, Tax Knowledge and Automatic Exchange of Information (AEoI) on the Tax Avoidance Intentions of E-commerce Business Actors. The research method uses a quantitative approach. The data used are primary data by distributing questionnaires in the form of Google forms to e-commerce business people. The research population is e-commerce players in West Java Province as many as 1,820 e-commerce business people. Determination of the sample with the Slovin formula resulted in 100 respondents. The sampling technique is purposive sampling with data analysis using Multiple Linear Regression. The results of this study indicate that Tax Knowledge has a positive effect on intention to avoid tax while E-Commerce, Self Assessment System and Automatic Exchange of Information (AEoI) have no effect on intention to avoid tax.

Investing in Crypto-Assets: Council Adoption of DAC8

This article provides an update on the adoption of an amendment to the Directive on Administrative Cooperation (2011/16) (DAC) on 17 October 2023, thereby bringing crypto-assets in scope of automatic exchange of information for tax purposes (DAC8). There is a high degree of interdependency between DAC8, the Markets in Crypto-Assets Regulation (MiCA) and OECD Crypto-Asset Reporting Framework (CARF). The authors provide an overview of DAC8 and highlight certain scoping observations based on the cross-referencing between DAC8, MiCA and CARF as well as on the proposed amendments from the European Parliament’s resolution dated 13 September 2023.

Experience in conducting tax amnesty in developing countries before the introduction of automatic exchange of tax information

The author provides a detailed overview of an article that examines tax amnesty programs within the framework of international tax initiatives like the BEPS Action Plan and the Common Reporting Standard (CRS). The article argues that the integration of these global initiatives and domestic tax amnesties has complex and far-reaching implications for taxpayer behavior, government revenue, and fiscal policy at large. The key themes of the article focus on global tax initiatives, the effectiveness of tax amnesties, the criteria for a successful amnesty program, and their ethical and social implications. The article underscores the transformative role of global frameworks like CRS and BEPS in tax enforcement, pointing to unprecedented levels of transparency and international cooperation. While the short-term revenue boosts from tax amnesties are acknowledged, the article argues that the long-term impacts of these programs on tax compliance and fiscal integrity are less certain. This makes the article’s detailed set of conditions for an effective tax amnesty program particularly valuable for policymakers. The ethical and social implications of tax amnesties are also explored, emphasizing that public trust is crucial for the success of these programs.
 In terms of methodology, the article combines qualitative analysis with empirical data, such as the OECD survey conducted in 2015, to build its arguments. Its comprehensive approach integrates perspectives from economics, law, and political science, making the findings relevant for a broad audience.
 In conclusion, the article is a significant contribution to the growing body of literature on tax policy and international cooperation. It offers a nuanced understanding of how domestic tax amnesties interact synergistically with global tax initiatives to impact compliance and revenue collection.

Tax Cooperation between the EU Member States and Türkiye Regarding Automatic Exchange of Information on Income Collected by Digital Platform Operators

In this note, the author discusses the probable legal foundations of automatic exchange of information on income collected by digital platform operators between Türkiye and the EU Member States. The note analyses the international legal framework, examines the extent to which Türkiye has domestic reporting obligations for digital platform operators parallel to the EU reporting rules and provides some conclusions and suggestions on this cooperation.

Pemanfaatan AEOI untuk Meningkatkan Kepatuhan Wajib Pajak High Wealth Individual dalam Program Pengungkapan Sukarela

Utilization of Automatic Exchange of Information (AEOI) data is expected to be able to encourage taxpayers are willing to take part in the Voluntary Disclosure Program (PPS) by disclosing assets that have never been reported in the Annual Tax Return or Tax Amnesty. This study aims to evaluate the effectiveness of AEOI in increasing High Wealth Individual (HWI) Taxpayer compliance during the PPS period at KPP X. This research is important to do because there are differences in the results between research conducted before and after the period of utilization of AEOI data by DGT starting in 2020. In addition, AEOI data, which is considered to be able to improve tax compliance, has several challenges in its utilization, namely data synchronization and rejection by taxpayers. The effectiveness of data utilization is measured using the CIPP Evaluation Model. This research is qualitative with a case study approach. Data collection was carried out through interviews with Account Representatives (AR) and analyzing the data and reports provided by KPP X. The results showed that there were several obstacles in the utilization of AEOI data, especially the accuracy of the data which required adjustments. Utilization of AEOI data effectively increases the participation of HWI Taxpayer in PPS. The tax paid by HWI Taxpayer who has AEOI data is higher than HWI Taxpayer who does not have AEOI data. This success was influenced by several factors, namely synergy and support from colleagues; high tax awareness and ability to pay and concrete power of AEOI data.

Либерализация валютного регулирования в России в условиях санкций

The purpose of the work is to analyze the transformation of the regime of monetary and financial regulation in Russia in the context of international sanctions in 2022. The course towards the liberalization of foreign exchange regulation in Russia has been temporarily changed in order to reduce capital outflow, protect the interests of Russian companies, and maintain the stability of the monetary and financial systems. The main measure was a temporary return to the requirements for the repatriation of foreign exchange earnings by exporters. After the measures took effect, the process of gradual abandonment of the imposed restrictions began. It is concluded that with the abolition of the requirement for the repatriation of foreign exchange earnings, the previously taken course towards the liberalization of foreign exchange regulation has generally recovered and is being maintained despite an unfavorable change in foreign economic and foreign policy conditions. Since the decisions on the introduction of currency restrictions and subsequent decisions on their abolition were taken as temporary measures, they need to be legislated. An analysis of some possible ways of further developing the liberalization of foreign exchange regulation in Russia is presented. It can be aimed at reducing the overall regulatory burden on businesses, promoting the development of non-commodity exports, de-dollarizing trade and investment, reorienting to the most promising foreign economic partners, and expanding international cooperation within the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.

Legal Protection for Automatic Exchange of Information Taxation in Indonesia: The Importance of Synergy with Cybersecurity Institutions

<span lang="EN-US">Every citizen who is the subject of taxes and already has a Taxpayer Identification Number (NPWP or NIK) must do tax reporting on his income. Such reporting ensures taxpayer property and income data validation while supporting good governance. Data automation support is needed from other agencies such as banks to find out the balance and ownership of deposits and bank securities, land bodies to know land ownership, stock exchanges to know share ownership and other institutions related to property ownership. Integration between these institutions will increase the validity of reporting property and income owned by government officials, ultimately improving integrity towards good governance. In reality, there is no automation of validation of annual notification letter (SPT) charging data on property ownership data in each institution due to the sectoral ego of each institution, and there is no real-time regulation of property validation. Automatic Exchange of Information (AEOI) enables the automated sharing of a set of information that has been previously defined by the tax authorities. AEOI is a plan of the G20 members and is initiated by the OECD. The AEOI system works through the exchange of financial data of foreign nationals living in a country. The exchange of financial data is carried out between the tax authorities in each country. Indonesia is prepared to put this into practice as a G20 member, as evidenced by the previous release of Minister of Finance Regulation Number 39/PMK.03/2017 (PMK 39), covering Procedures for Exchange of Information Based on International Agreements. Types of Documents and/or Additional Information Required to Be Retained by Taxpayers Conducting Transactions with Related Parties and Procedures for Management, Minister of Finance Regulation No. 213/PMK..03/2016 (PMK 213). As a result, in addition to the Automatic Exchange of Information (AEOI) regulation put out by the Organization for Economic Cooperation and Development, there needs to be legal protection (OECD). Furthermore, the author emphasizes the importance of cooperation and synergy with cybersecurity institutions to secure tax exchange data.</span>

Exchange and provision of information in the field of tax administration and prevention of tax evasion

The exchange and provision of information on taxpayers generally pursue different objectives. According to the provisions of tax law, the main purpose of obtaining information on taxpayers was to implement effective tax administration. Subsequently, other tasks have been added to this objective, including prevention of tax evasion, tax avoidance and related tax crime detection and investigation. The provision and exchange of information between the tax administration authorities and other legal entities, especially the national supervisory authority or national central bank, is subject to a strict regulatory regime, based on an explicit legal mandate to utilise the information. The reason is that the subject of the provision and exchange is often information that has a special secrecy protected by the law, such as banking secrecy, professional secrecy or protected information regarding securities. The authors identify and analyse the legal regime for providing information for the purposes mentioned, especially in the conditions of the Slovak Republic. The legal regime in the Slovak Republic is also more or less affected by legal acts adopted at global (OECD) level and EU level, so the authors take into account, to some extent, these legal acts when dealing with the automatic exchange of tax information between the tax administration of EU and non-EU member states. In this context, the authors differentiate according to whether the provision of information takes place under vertical or horizontal institutional relations. Following that, the aim of the paper is to identify how the related authorities/persons interact in horizontal institutional relations and vertical institutional relations.

Balance of confidentiality and tax transparency in legal regulation of automatic exchange of financial account information in the United States

The subjectof research, relevance. Exchange of information is an important measure of administrative cooperation between and among tax authorities aimed at the fight with tax evasion. Tax evasion is a problem that has gone beyond national borders, thus individual states can’t cope with it alone. In the light of this problem tax authorities develop new forms of administrative cooperation such as automatic exchange of information. While developing new forms, states should remember about the balance of private and public interest. In the context of automatic exchange of information this problem looks like a problem of finding a balance between confidentiality and tax transparency.The purpose.The article discusses the problem of finding a balance between confidentiality and tax transparency on the example of the United States. The choice of the United States may be explained by its national approach to such a balance that differs from the approach of other states that have implemented the Common Reporting Standard and Mandatory Disclosure Rules.The aimof the article is to show what peculiarities in national and international regulation in the United States influence their unique approach and what is the effect of this approach on the global system of automatic exchange of information and the rights of the US taxpayers.The methodological basis.The following scientific methods were used: comparative-legal, formal-juridical and historic-legal. The research was conducted in compliance with the principles of independence and verification of the results.The main results,scope of application. The conclusion of this article is that the balance of private and public interest in the context of automatic exchange of information is reached by the United States through confidentiality provisions exclusively. They use their national state legislation on beneficial ownership and the lack of reciprocity in intergovernmental agreements implementing FATCA to attract foreign investors (non-resident aliens) wishing to avoid reporting under the Common Reporting Standard. Meanwhile, the United States acquire full information on the financial accounts of their citizens and resident aliens who are beneficial owners of such accounts held in foreign financial institutions. Such a state of affairs is dangerous for the effectiveness of the global system of automatic exchange of information. Moreover, it impairs the rights of Accidental Americans who permanently reside in foreign states and have no connection with the United States except for their citizenship but still have reporting obligations before the US Internal Revenue Service.Conclusions.Automatic exchange of information should be developed in compliance with the principle of balance between tax transparency and confidentiality. States should follow one and the same approach to providing such a balance. At the same time the taxpayers’ rights, in particular the rights of Accidental Americans, should be protected and they can’t be outweighed by the need of administrative cooperation between or among tax authorities.

Optimalisasi penerapan Automatic Exchange of Information (AEoI) dalam mendorong pendapatan negara atas pungutan pajak penghasilan

This study will explore the existence of Automatic Exchange of Information (AEoI) in the Taxation System in Indonesia, and its role in encouraging income tax in Indonesia. The background of this research is based on the idea that income tax is a tax on increasing wealth, and the Automatic Exchange of Information as an instrument in order to support the trace for the increase in the wealth of each taxpayer, by disclosing the bank account information of every taxpayer, both domestically and in other countries. This research is a normative research by using a conceptual approach and a statute approach. The results of this study are that the Automatic Exchange of Information in the taxation system has a position as a balancing instrument, for the possibility for taxpayers to do tax avoidance on their annual tax reports, by breaking through to the confidentiality aspect. In addition, if the Automatic Exchange of Information policy runs optimally, it will be simultaneously with optimalization of income tax.

Understanding the Role of DAC8 and MiCAR in the European Union’s Efforts towards Tax Harmonization

Crypto assets have come under the scrutiny of the EU legislator. Particularly from a regulatory perspective and in the field of tax transparency, the Eighth Directive on Administrative Cooperation (DAC8) has been introduced, which focuses on automatic exchange of information between the tax authorities of the Member States. DAC8 imposes an obligation on crypto asset service providers to obtain data from their users. However, this legislation is not free from challenges. The aim of this article is to present an overview of the recent laws enacted to regulate the crypto asset market and give a better understanding of how these rules come into play in the larger regulatory framework as well as the role that new intermediaries will have in the changing legal landscape.

Escaping the exchange of information: Tax evasion via citizenship-by-investment

With automatic exchange of tax information among countries now common, tax evaders have had to find new ways to hide their offshore holdings. One such way is citizenship-by-investment, which offers foreigners a new passport for a local investment or a fixed fee. We show analytically that high-income individuals acquire a new citizenship to lower the probability that their tax evasion is detected through information exchange. Using data on cross-border bank deposits, we find that deposits in tax havens increase after a country starts offering a citizenship-by-investment program, providing indirect evidence that tax evaders use these programs.

Legal characteristics of aggressive tax planning

The article studies the problems of legal characteristics of tax planning. It is emphasized that there is no single approach to determining the balance of private and public interests in the field of taxation. This especially concerns situations where  taxpayers try to optimize tax payments in a way that does not involve a direct violation of the law, but has signs of abuse of the right, which is characteristic of an aggressive tax planning. It is argued that the solution to this problem is important, since abuse of rights by taxpayers, using the imperfections of legislation, manipulation of differences in tax regulations of different states, as well as active use of low-tax jurisdictions in business schemes leads to huge losses in the budgets of many countries. It is pointed out that aggressive tax planning is not direct violation of the law, otherwise such actions would be qualified as tax offense. The positions of scientists regarding the definition of such a category as “aggressive tax planning” are presented in the article, as well as the author's position on this issue is highlighted. It is noted that the widest toolkit of tax optimization can be used in the implementation of international tax planning. In the past, one of the main, most common and effective methods of aggressive tax planning was the use of low-tax jurisdictions. However, the influence of this factor has been efficiently reduced by modern trends to counteract this phenomenon, in particular, the widespread introduction of anti-BEPS measures and automatic exchange of tax information. Other common tools of aggressive tax planning are listed, including transfer pricing. The negative consequences of aggressive tax planning for the state are described, related to the reduction of tax revenues to the budget, as well as the creation of an anti-competitive environment due to receiving unfair tax advantages. The main methods of combating aggressive tax planning both at the international and domestic level are disclosed. The main signs of aggressive tax planning are identified and the conclusion is drawn that in each specific case, the behavior of the taxpayer, which has signs of aggressive tax planning, should be evaluated for the presence of abuse of the law, which will allow the application of appropriate legal consequences for the purpose of protecting state and public interests.

Everybody’s Got Something To Hide Except Me and My NFT’s Monkey – An Analysis of the European Commission’s DAC8 Proposal on Automatic Exchange of Cryptoasset Information

In this article, the author analyses and comments on the European Commission’s DAC8 proposal to implement the automatic exchange of information with regard to cryptoassets and related matters.

Analysis of the Functioning of the Automatic Exchange of Information about Financial Accounts after Implementation of the Common Reporting Standard

The adoption of the Common Reporting Standard (CRS) by the OECD in 2014 raised many concerns. Banks were particularly obliged to implement many changes in order to properly collect and aggregate data on tax residence of their clients and correctly report them to the tax administration authorities. The aim of this article was to assess the functioning of the CRS, taking into account the benefits of implemented changes and critical voices regarding the functioning of the standard. The efficiency of the solution based on OECD data and a critical analysis of some aspects of the CRS were presented. The adopted research method was based on verification of official OECD documents and comparative analysis of data presented by the organization with the research conducted by scientific institutions and other private and public entities. According to the results of the research, the automatic exchange of financial information is not functioning optimally, and reforms need to be carried out. The additional revenues generated by the CRS are relatively low compared to the tax losses still generated by tax optimization.

Voluntary Disclosure Program (VDP) in the eye of Tax Official

This article aims to analyze the background, concept and what is expected from The Voluntary Disclosure Program from the perspective of Tax Officials. VDP is a result of the Automatic Exchange of Information (AEOI) agreement between countries. VDP is steps taken by the Indonesian Government to put AEOI to practice by releasing Law Number 9 Of 2017 On Enactment Of Government Regulation In Lieu Of Law  Number 1 Of 2017 On Access To Financial Information For Tax  Purposes To Become Law. Government to increase Tax Compliance in Indonesia. The Government regulates the implementation of VDP through Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP), and the technical implementation is regulated in Regulation of MoF No. 196/PMK.03/2021 concerning Procedures for Implementing the Taxpayer Voluntary Disclosure Program. The voluntary Disclosure Program (VDP) gives taxpayers opportunities to disclose tax obligations that have not been fulfilled voluntarily through the payment of income tax based on the disclosure of their assets.

Exchange of Information in Tax Matters

Globalisation and cross-border movement of persons and capital have placed new challenges before national tax systems as well as international taxation. Over the past 20 years there has been an unprecedented development of exchange of information, a previously ancillary instrument which has developed into a widely accepted global means of fighting tax evasion. Exchange of information has evolved from an instrument of limited scope used for the implementation of tax treaty provisions to a sophisticated system of automatic information exchange encompassing a vast majority of countries, including infamous tax havens. The notions of tax secrecy and tax transparency have undergone a re-evaluation process, resulting in new global paradigms directed at unveiling previously secret transactions. Banking secrecy has been abolished even in countries with a strong tradition thereof. As some time has passed since the introduction of the latest global standard of the automatic exchange of information, this paper reflects on the most important aspects of exchange of information, regulated by tax treaties: the OECD’s CRS, EU’s DAC, and FATCA. Following a theoretical introduction, which provides a historical and comparative overview of information exchange instruments, the paper presents the practical results of the implementation. Findings of the evaluation of the instrument conducted by key international stakeholders are accompanied by available statistical information, depicting to what extent it has been helpful in preventing tax evasion in Croatia and Slovenia and in recovering lost public revenues. The paper results in identifying the shortcomings of national applications, based on best global practices and statistical data as well as providing tax authorities with recommendations for the improvement of exchanging information. As the system is still in a rather early stage of implementation, the paper presents the current tax administration involvement in exchanging information, which will enable further evaluations in future stages of implementation of the instrument.

Міжнародне співробітництво у сфері протидії ухиленню від сплати податків та запровадження загального стандарту звітності (CRS)

Introduction. The strengthening of globalization processes caused significant changes in the international taxation system. The negative consequences of globalization include large-scale tax avoidance and erosion of the tax base. These phenomena caused systematic steps by international organizations in the direction of substantiating the scope of action for the realisation of the process of automatic exchange of information on financial accounts in accordance with the General Reporting Standard and other documents. Ukraine has joined the initiatives of the international community and is consistently implementing measures for their adaptation and implementation. At the same time, there are some limitations in the application of the developed standards, which can be used by unscrupulous taxpayers as a loophole for harmful tax practices. Problem Statement. The scientific basis for the implementation of the BEPS Plan, in particular, the introduction of the process of automatic exchange of information on financial accounts in accordance with the General Reporting Standard. Purpose. Identification of key milestones in the formation and implementation of the BEPS Plan, as well as identification of some limitations and shortcomings in the provisions and procedures of automatic exchange of information on financial accounts, which may lead to abuse, improper actions, violations of confidentiality and security. Methods: analysis and synthesis, comparative analysis, analytical, implementation of a systemic approach to the study of issues Results. The systemic steps of international organizations regarding the implementation of the BEPS Countermeasures Plan and the development of relevant decisions and documents were analyzed. Some limitations in the application of the developed solutions, which can be used by unscrupulous taxpayers as a loophole for the continuation of harmful tax practices, have been identified. The actions of the Ukrainian government regarding joining the international community in the matter of automatic exchange of information on financial accounts are outlined. Conclusions. Therefore, systemic measures for the implementation of the BEPS Countermeasures Plan provide for the formation of a methodology for the application of mechanisms for such countermeasures, in particular principles, directions, tools, procedures and technologies that make impossible or complicate the processes of blurring the tax base and avoiding taxation. For this purpose, key international organizations, in particular the OECD, the Council of Europe, the G20 and the G8, have decided and prepared a number of documents, as well as standards, model and standard agreements to involve national governments in the implementation of joint efforts to counter BEPS, among which a special place is occupied by the Model Competent Authority Agreement (CAA) for automatic exchange of information and Common Reporting Standard. At the same time, when implementing agreements and standards, risks arise due to: avoidance of reporting by some financial institutions and other subjects of legal relations; breach of confidentiality; departure of some countries from general practice and standard procedures, etc. While developing a platform for legal, administrative, financial and economic, technical and technological support for the implementation of BEPS countermeasures, Ukraine should take into account the lessons of negative experience and prevent limitations of the specified standards.