Chapter 3 analyses the modalities of exchange of information upon request, as provided for under double taxation conventions, and notably under Art. 26 of the OECD Model. The conditions of application of this provision (material scope, personal scope, and taxes covered) are discussed as well as frequent issues, based particularly on recent case law (notably interpretation of the standard of foreseeable relevance, identification of the taxpayer, or group request). In addition, the competence and secrecy rules are described. Finally, this chapter focuses on the limits of this provision, especially the domestic limits, principle of reciprocity, trade or business secret, public policy and the impact of bank secrecy.
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Chapter 10 gives a broad description of the FATCA legislation, adopted by the United States in 2010 and implemented as of 2013. This new legislation, and notably the adoption of the intergovernmental agreements between States (so-called IGAS’s), designed to facilitate on a bilateral basis the implementation of the FATCA system, can appear a decisive factor which contributed to the emergence of the model of automatic exchange of information as the new global standard.
Chapter 2 gives a broad historical overview of the development of the rules on exchange of information in tax matters. It starts in 1927 with the first models of double taxation conventions developed at the League of Nations. It then describes the evolution of the OECD Model of a double taxation convention and notably of Art. 26 of such Model, which started in 1968 and continued to evolve, especially after 2009, as the global standard of exchange of information upon request. Finally, after the adoption of FATCA in 2010, and following the G20 mandate to the OECD, automatic exchange of information started to emerge as a global standard.
Chapter 14 is new. It shows how the so-called BEPS initiative, introduced in 2013, which ensued from a G20 mandate to the OECD, also impacts exchange of information in tax matters. In particular, the chapter will demonstrate how the country-by-country reporting and the spontaneous exchange of rulings will apply and interact with the current rules of exchange of information. The chapter takes into account, not only the models developed under the relevant action plans, but also the EU Directives which have been adopted in this context.