Information Exchange Agreements Research Articles

CROSS-BORDER TAX CHALLENGES AND SOLUTIONS IN GLOBAL FINANCE

In the dynamic landscape of global finance, cross-border transactions have become increasingly prevalent, facilitating economic growth and international trade. However, accompanying this expansion are complex tax challenges that both multinational corporations and governments encounter. This abstract delves into the multifaceted issues arising from cross-border taxation and explores potential solutions to mitigate these challenges effectively. One of the primary concerns in cross-border taxation is the issue of base erosion and profit shifting (BEPS), where multinational enterprises exploit gaps and mismatches in tax rules to artificially shift profits to low-tax jurisdictions, thereby eroding the tax base of higher-tax jurisdictions. Such practices not only lead to revenue losses for governments but also create an uneven playing field for businesses. Furthermore, navigating the intricate web of international tax treaties and agreements poses significant hurdles for taxpayers and tax authorities alike. The lack of uniformity in tax regulations across jurisdictions often results in ambiguity and disputes regarding the allocation of taxing rights and the determination of taxable income. Addressing these challenges requires a comprehensive approach that incorporates both policy reforms and international cooperation. Implementing measures such as the OECD/G20 BEPS project, which aims to modernize international tax rules and combat tax avoidance strategies, is crucial. Additionally, enhancing transparency through initiatives like country-by-country reporting enables tax authorities to gain insights into the global operations of multinational corporations, thereby facilitating more effective enforcement of tax laws. Moreover, fostering collaboration among nations through information exchange agreements and multilateral frameworks enhances the effectiveness of tax enforcement efforts and reduces opportunities for tax evasion. Embracing digitalization and leveraging technology tools can also streamline tax compliance processes and enhance the efficiency of cross-border tax administration. The complexities of cross-border taxation in global finance necessitate proactive measures to address BEPS, enhance tax transparency, and promote international cooperation. By implementing comprehensive strategies that blend policy reforms with technological innovations, stakeholders can navigate the challenges posed by cross-border taxation while fostering a fair and conducive environment for sustainable economic growth.
 Keywords: Cross-Border, Tax, Environment, Sustainable, Economy, Review.

Damages Claims in Information Exchange Agreements

Schlecker

(Lack of) Competition, Coordination, and Information Sharing in the Pork Industry: United States, 2009–2020

In 2020, an antitrust lawsuit was filed against the Pork Integrators alleging a §1 Sherman Act violation. At the center of the Lawsuit, there is an alleged exchange of atomistic information about the Pork integrators’ operations using Agri Stats, Inc. as a clearinghouse. We use the Supreme Court benchmark in American Column & Lumber to discuss two questions that arise from the Lawsuit. The first is whether the association of Pork Integrators and Agri Stats, Inc., resulted in the restraint of interstate commerce, the main specific issue at stake in the pork Lawsuit. The second is whether information-exchange agreements using clearinghouses like Agri Stats, Inc., lessen competition and offend U.S. antitrust law, a more general issue beyond the pork Lawsuit. We find that there appears to be ample evidence in the Lawsuit to merit prosecution regarding both trade restraints and information-sharing agreements. We conclude by discussing the role of the Agencies in setting the standards in information-exchange agreements.

Colombia – Panama: Traceability of a tax information exchange agreement

Introduction: In the fight against cross-border tax evasion, States use tools to achieve this goal. One of the main tools are treaties and conventions that seek to ensure that taxpayers are not taxed in two jurisdictions for the same transaction and to establish which of the signatory States collects the taxes without this collection occurring twice, which is essential for the determination of the taxes associated with the transactions of the nationals involved. Objective: From this perspective, the purpose of this paper is to trace the origin of the partial exchange of tax information between Colombia and Panama and to determine its importance in tax matters. Methodology: The methodology is qualitative, normative and bibliographic, descriptive and explanatory, based on tax regulations and previous studies conducted by various researchers. Results: As a result, there is evidence of the beginning of an exchange of information for 2019, which led to an increase in tax collection. Conclusions: It is concluded that the outline of the negotiations is positive, reflected in the sending of information for taxable year 2019 of Colombian nationals with assets or economic activities in Panamanian territory.

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.

OECD and deoffshorization of microstates of Europe

The article is devoted to studying the issue of the formation of the international legal regulation of the activities of so-called offshore zones – special jurisdictions that specialize in providing financial services to non-residents in conditions of low or zero taxation, stability and confidentiality. Since the late 1990s, the most successful anti-offshore policy has been conducted (in close cooperation with the G20 states) by the Organization for Economic Cooperation and Development (OECD), which has begun to actively use both organizational and international legal methods in its activities. The most successful examples include the OECD adopting the International Standards for the Exchange of Tax Information (Tax Information Exchange Agreements) in 2009, the Base Erosion and Profit Shifting Program in 2013 (which has become its most significant and successful initiative), the Multilateral Competent Authority Agreement in 2014, as well as the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting in 2016, and others.However, in Europe the OECD was forced to face a situation where not only member states or specific territories that are in one form or another directly dependent on said states served as offshore zones, but also small (micro) sovereign states that were not its members. The microstates of Europe ended up resisting the OECD's anti-offshore activities for quite a while, since the high profitability of the offshore business made these states accustomed to getting “easy” money, and their population – to the high standard of living, which was largely provided for by these funds. The conducted research allowed the author to draw the conclusion that multiple stages can be singled out in this confrontation, during which the microstates of Europe, somewhat successful at first, were eventually forced to cooperate with the OECD and officially accept the rules the latter, as well as the mechanisms of interstate tax control it introduced. To a large extent, this stemmed from the fact that the microstates feared the G20 countries would levy sanctions against them, as well as because some of the microstates of Europe, in light of the instability of the world financial and economic system, were looking for ways to access the European market by obtaining the status of associated EU members. Nonetheless, while formally adhering to the OECD requirements, the microstates of Europe are still attempting to provide offshore services to nonresidents by transforming and significantly complicating the financial schemes used for such purposes. General scientific methods, the technic method, the concrete-historical and the historicalgenetic methods, as well as the formal-dogmatic and the systemic approaches were used within the framework of the study.Offshores and the settlement of cross-border tax relations is one of the most vital economic problems of our time, yet no fundamental scientific research on the international relations of the OECD and the microstates of Europe has yet been carried out.

The Possible Regulation Model To Optimize The Automatic Exchange Of Information (Aeoi) In Indonesia Through Directorate General Of Taxation, Ministry Of Finance And Financial Services Authority

Tax Treaty is a bilateral(two-party) agreement made by two or more than two countries to resolve some issues involving double taxation, transfer pricing, and treaty shopping. Several governments and organizations use model treaties generally as starting points, such as OECD Model Convention and US Model Convention. As a member of G20, Indonesia has participated in The Automatic Exchange of Information (AEoI) provides for the automatic exchange of predefined set of financial accounts information between tax authorities, based on The Common Reporting Standard (CRS), as also mentioned in Tax Information Exchange Agreement (TIEA) implemented in 2018. In order to implement AEoI the Indonesian regulator needs to review the Banking Law and the Tax Provisions and Procedures, There is an urgent need to regulate a regulation as a standard that will be used in CSR, support the tax reform and to enhance the capacity and the authority of Directorate General of Taxation, Ministry of Finance and Financial Services Authority, while still considering the protection for the Bank Secrecy. This research will formulate a model regulation that can facilitate the implementation of the AEoI, by carrying out a study in 3 countries, which is Indonesia, Malaysia and Singapore

International Exchange of Information in the Field of Direct Taxation

In connection with continually widening public budget deficits and related attempts of States to remove (or at least to eliminate) unfair tax practices, issues regarding the exchange of information, which is necessary for the proper performance of provisions of conventions for the avoidance of double taxation and/or national laws, have become topical. The purpose of this paper which includes starting points for subsequent analyses is to describe and assess the existing situation in the area of enshrinement of the concept of exchange of information in current conventions for avoidance of double taxation concluded by the Czech Republic according to the state valid on 1 January 2013. Having regard to this objective defined, the authors ignore other aspects such as the existence of memoranda of mutual cooperation concerning the exchange of information, existence of tax information exchange agreements concluded by the Czech Republic and Euroepan Union law in the given area and their contents. They briefly refer to these and other aspects in the chapter called “Discussion” where they point to other research possibilities in this area.

Service Coordination to Address Maternal Mental Health, Partner Violence, and Substance Use: Findings from a National Survey of Home Visiting Programs.

Maternal risks such as poor mental health, partner violence, and substance misuse can undermine child health and development. Maternal and early childhood home visiting programs address these risks primarily through referral and coordination with community-based services, yet effects on these outcomes have been small. This study assessed the strengths of local home visiting sites' systems to support coordination of mental health, partner violence, and substance use services. Investigators recruited home visiting sites (N = 88) representing diverse models from a national practice-based research network, the Home Visiting Applied Research Collaborative (HARC). Web-based surveys assessed five implementation system supports for coordination and nine coordination activities drawn from the Measurement Framework for Coordination developed earlier in the project. Surveys also assessed seven coordination barriers identified in previous research. Sites varied in their implementation supports and coordination activities; on average, sites had stronger systems in place to support screening and referring families than to support linkage and follow-up. Implementation supports and activity scores were higher for mental health and partner violence than for substance use. Across all service needs, scores were highest for offering a referral and documenting the caregiver's agreement for exchange of information between providers. Scores were lowest for offering a warm handoff. Lack of open slots and lack of transportation were major barriers to successful coordination for all three services. Results suggest that home visiting coordination could be strengthened by focusing on infrastructure for linkage and follow-up with services in the broader system of care.

Overview of Indian Tax Information Exchange Agreements

Tax information exchange agreements are getting prominent importance in the globalized world; they are playing a pivotal role in the elimination of tax evasion, which is a very big problem for developing countries like India to tackle the problem of tax evasion and tax avoidance. Organization for Economic Co-operation and Development (OECD) has implemented an 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 which are facing the problem of tax evasion by the tax payers i.e., who are shifting their incomes to tax heavens, this problem can be reduced to a greater extent by negotiating more and more tax information exchange agreements. Keeping all the above said factors in mind this paper mainly aims to analyze the recent developments in 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 the problem of tax evasion and harmful tax practices in India, and there must be a sound policy of negotiating tax information exchange agreements with more number of tax heavens and countries.

Exchange of information: the challenge ahead—Bermuda International Academy of Estate and Trust Law Tokyo May 2019

Abstract Bermuda has been engaging in tax information exchange with other jurisdictions since the 1980s. This article, which is based upon a paper presented at the annual meeting of the International Academy of Estate and Trusts Law in Tokyo, Japan in May 2019, looks at the historical trend towards information exchange. The article considers in detail the system now in place under Bermuda law for the production of information pursuant to tax information exchange agreements (TIEAs). This requires a court order and the reported case law dealing with challenges to these TIEA orders provides a useful insight into the nature and range of the requests being made by foreign tax authorities.

Agencies without borders: Explaining partner selection in the formation of transnational agreements between regulators

AbstractTransnational collaboration between regulatory agencies has proliferated rapidly within the last three decades. However, given that information regarding the motives, trustworthiness, and capabilities of potential partners is typically imperfect, decisions about with whom to collaborate are inevitably characterized by a degree of uncertainty. To better capture these dynamics, this article uses a network analytical perspective and hypothesizes that agencies are more likely to form agreements with agencies to whom they are already indirectly connected (transitivity), that are highly connected (preferential attachment), or with whom they share tie‐characteristics (assortativity). To test these hypotheses, a stochastic actor‐oriented model is used to analyze an original, self‐coded data set in which bilateral information exchange agreements between national securities agencies (n = 143) are mapped out over a 18‐year period. The results show that the formation of agreements between regulatory agencies is driven by (i) the number of shared partners (i.e. triadic closure); and (ii) similarity regarding agency characteristics (i.e. homophily).

Transfer Pricing Regulations 2018 and Guidelines for Country-by-Country Reporting in Nigeria

Recently, the Federal Inland Revenue Service of Nigeria has issued two sets of regulations that provide for country-by-country reporting as part of transfer pricing. CbC reporting will permit the exchange of information with other countries that have signed an agreement for exchange of information and, thus, will aid the Nigerian tax administration to assess taxpayers’ liability to BEPS and exposure to transfer pricing risk.

The Impact of International Tax Information Exchange Agreements on the Use of Tax Amnesty: Evidence from Norway

In this paper we develop a model for tax amnesty applications in a multi-period setting. One key insight from the model is that applying for amnesty becomes more attractive at the moment when stricter enforcement is announced, even if the implementation of the policy is in the distant future. We use our model to make sense of how international tax information exchange agreements affects voluntary disclosure of wealth and income previously hidden in tax havens. Our data is from Norway. In accordance with the dynamic amnesty model we observe a strong announcement effect of a tax information exchange agreement between Norway and Switzerland and Luxembourg, the two most important tax havens for Norwegian tax evaders. However, the effect levels off very quickly, much faster than our model predicts. We think this is because the initial announcement of the tax agreement exaggerated the risk the agreement imposed to those who had hidden taxable income and wealth in Switzerland. We also estimate and find significant effects of the press releases the Norwegian Tax Authority issues to inform taxpayers about new international tax agreements and the amnesty, or voluntary disclosure, option that exists in the Norwegian tax code.

The Impact of International Tax Information Exchange Agreements on the Use of Tax Amnesty: Evidence from Norway

In this paper we develop a model for tax amnesty applications in a multi-period setting. One key insight from the model is that applying for amnesty becomes more attractive at the moment when stricter enforcement is announced, even if the implementation of the policy is in the distant future. We use our model to make sense of how international tax information exchange agreements affects voluntary disclosure of wealth and income previously hidden in tax havens. Our data is from Norway. In accordance with the dynamic amnesty model we observe a strong announcement effect of a tax information exchange agreement between Norway and Switzerland and Luxembourg, the two most important tax havens for Norwegian tax evaders. However, the effect levels off very quickly, much faster than our model predicts. We think this is because the initial announcement of the tax agreement exaggerated the risk the agreement imposed to those who had hidden taxable income and wealth in Switzerland. We also estimate and find significant effects of the press releases the Norwegian Tax Authority issues to inform taxpayers about new international tax agreements and the amnesty, or voluntary disclosure, option that exists in the Norwegian tax code.

Protecting the right of privacy

The backdrop to encroachments on privacy is the end of secrecy from taxing authorities, combating financial crimes, concerted tax enforcement efforts and the 2008 world-wide financial crisis. In response to the financial crisis, governments have enacted information exchange agreements, FATCA and CRS. While CRS may prove the most obvious threats to privacy, other equally real threats to privacy are encroachments on attorney–client privilege, the irresponsible use of “sham” trusts, governmental efforts at trust registration, and the internet itself. There are, however, deeply imbedded in our legal systems, many protections of privacy, such as: taxpayer secrecy by taxing authorities, the ability to seal court proceedings, causes of action for invasions of privacy, protection of patents, copyrights, trademarks and trade secrets, and the right of publicity, particularly after death.

Black Money in India: Retrospect and Prospect

The paper makes a review of the attempts of the earlier governments to control black money through various measures vis-à-vis those taken by the present government. The paper finds some leniency in the recently declared Electoral Bond scheme otherwise such other measures of the present government appear to be more focused and reasonably effective. Demonetization was criticized due to the fall-out on the economy in general and its failure as an economic measure to curb black money in particular. The government remains successful in signing too the long awaited Tax Information Exchange Agreement with countries known as tax havens. It is implementing the new Black Money Act. Thus, not remaining exclusively dependent upon tax amnesty schemes like that of the previous governments; the present government has taken a few stern measures in pursuit of fulfilling the ruling political party's election promise to curb the black money menace. Appointment of anticorruption authority or ombudsman following the required legislation having passed under the pressure of an apolitical social movement is the need of the hour. The already existing Prevention of Corruption Act should be suitably amended as proposed, thus not to retain the same any more as a blunt legal weapon to restrain corruption engineered black money.

Tax Information Exchange Agreements and the Prohibition of Retroactivity

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.

PERPPU NOMOR 1 TAHUN 2017 TENTANG “AKSES INFORMASI KEUANGAN UNTUK KEPENTINGAN PERPAJAKAN” DAN IMPLIKASINYA TERHADAP LEMBAGA KEUANGAN DI INDONESIA

<p>Access of tax officers to the financial industry customers is set forth in Perppu No. 1 2017Th, the issuance of this rule is closely linked to the financial information exchange agreement between the Automatic Exchange of Financial Account Informce (AEoFIA) organized by Member States of the Organization for Economic Co-operation and Development (OECD), including Indonesia. At the same time the Perppu is at the same time the capital of the tax authorities to pursue the tax target. The tax authorities are authorized to request additional information and evidence from financial institutions, as the latter annuls several articles which have been the secret locking of financial industry customers. This Perppu will raise tax revenues given the low acceptance of the current tax base. Nevertheless this Perppu would be perfect if it could be metamorphosed into Law.</p>

Skuteczność umów o wymianie informacji podatkowych w relacjach z państwami stosującymi szkodliwą konkurencję podatkową

Artykuł podejmuje tematykę umów o wymianie informacji podatkowych (TIEA) zawieranych przez Rzeczpospolitą Polską z tzw. krajami stosującymi szkodliwą konkurencję podatkową. Ze względu na fakt, iż porozumienia TIEA są relatywnie nowymi instrumentami w rzeczywistości nie tylko polskiej, ale również międzynarodowej, w badaniach podjęto próbę odpowiedzi na pytanie, czy umowy o wymianie informacji podatkowych są rzeczywiście stosowane w celach utrzymania międzynarodowych relacji z „krajami niewspółpracującymi”. Metodą analityczno‑ ‑porównawczą zbadano aktualny stan prawny umów TIEA oraz jego wpływ na możliwość uzyskania informacji od administracji podatkowych terytoriów offshore. Na podstawie danych uzyskanych z Biura Wymiany Informacji Podatkowych w Koninie zanalizowano, czy uruchomione instrumenty prawne pozwalają Polsce na współpracę w omawianym zakresie. Późniejsze porównanie zebranych danych z informacjami uzyskanymi z administracji podatkowej Królestwa Niderlandów – kraju o znacznie dłuższej tradycji w wymianie informacji z terytoriami trzecimi – pozwoliło na dokonanie oceny efektywności wykorzystania polskich porozumień TIEA.