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INTERNATIONAL CO-OPERATION

AND
ACCESS TO INTELLIGENCE
The views expressed in this presentation are the views of the author and do not necessarily reflect
the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development
Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee
the accuracy of the data included in this paper and accepts no responsibility for any consequences
of their use. Terminology used may not necessarily be consistent with ADB official terms.

Centre for Tax Policy and Administration

Knowledge and Sharing are Crucial


International Co-operation is one of the key pillars of
the Oslo Dialogue and whole of government
approach to fighting tax crimes and other financial
crimes
Removing barriers to cross-border information
exchange is critical for dealing with international
criminal activity

OECD Publication
International Co-operation Against Tax Crimes and Other Financial Crimes

Key agencies involved in the


fight against tax crimes and
other financial crimes
Different instruments
available for international cooperation on tax and other
financial crimes
Describes current initiatives to
improve co-operation

International Co-operation
Key Instruments
Key tax related instruments:
Bi-lateral Treaties (OECD Model Tax Convention)
Tax Information Exchange Agreements (TIEA)
Multilateral Tax Treaties (
Multilateral Convention on Mutual Administrative Assistance
in Tax Matters
)
Various EU Directives

Other key instruments:


Mutual Legal Assistance Treaties

Multilateral Convention on Mutual


Administrative Assistance in Tax Matters
The most powerful instrument for international
tax co-operation
94 jurisdictions including 15 through territorial
extension:
all G20 countries
growing number of developing countries participate in the
convention

Multilateral Convention on Mutual


Administrative Assistance in Tax Matters

Multilateral Convention on Mutual


Administrative Assistance in Tax Matters
Use of information to combat serious crimes:
Information obtained under the Convention may be
relevant for other purposes such as pursuing serious
financial crimes.
The Convention permits such other use when:
such information may be used for such other purposes
under the laws of the supplying Party, and
the competent authority of that Party authorises such use.

Multilateral Convention on Mutual


Administrative Assistance in Tax Matters
Also provides the legal framework for:
Automatic Exchange of Information (AEOI) of
financial account information:
Dividends
Interest
Pensions
Salaries, etc.

AEOI of Country by Country reporting:


Profits
Tax paid, etc.

AEOI Commitment Status


JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2017
Anguilla, Argentina, Barbados, Belgium, Bermuda, British Virgin Islands, Bulgaria, Cayman
Islands, Croatia, Curaao, Cyprus, Czech Republic, Denmark, Dominica, Estonia, Faroe Islands,
Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Hungary, Iceland, India,
Ireland, Isle of Man, Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,
Mauritius, Mexico, Montserrat, Netherlands, Niue, Norway, Poland, Portugal, Romania, San
Marino, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Trinidad and
Tobago, Turks and Caicos Islands, United Kingdom, Uruguay

JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2018


Albania, Andorra, Antigua and Barbuda, Aruba, Australia, Austria, The Bahamas, Belize, Brazil,
Brunei Darussalam, Canada, Chile, China, Colombia, Cook Islands, Costa Rica, Ghana, Grenada,
Hong Kong (China), Indonesia, Israel, Japan, Marshall Islands, Macao (China), Malaysia,
Monaco, New Zealand, Qatar, Russia, Saint Kitts and Nevis, Samoa, Saint Lucia, Saint Vincent
and the Grenadines, Saudi Arabia, Singapore, Sint Maarten, Switzerland, Turkey, United Arab
Emirates

On-Going OECD Work


Project on international co-operation in tax matters
(both civil and criminal use)

Input from 28 countries (Australia, Austria, Canada, Chile,


Colombia, Costa Rica, Finland, Germany, Greece, Iceland, India, Ireland,
Italy, Japan, Jersey, Latvia, Malaysia, Netherlands, Norway, Singapore,
Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the
United Kingdom, and the United States)

Identify legal and operational barriers


Establish recommendations and implement, where
possible, solutions

On-Going OECD Work


Areas where discrepancies in domestic laws and
policies result in legal barriers for combatting tax and
other financial crimes:
The requirement to notify a suspect that a treaty request has
been made
The requirement of dual criminality
Thresholds for qualifying an act as a criminal offense
Differences in defining the actus reus of tax crimes
The choice of the international legal instrument to request
information
The admissibility requirements for information to be given in
evidence

On-Going OECD Work


Operational barriers for combatting tax and other
financial crimes:
Delays (in handling, domestic time limitations, due to
differences in the laws and processes in responding country,
lack of resources in responding country, request to wrong
authority, request for information not obtainable, etc.)
Communication (using inappropriate channels for the request,
finding the right contacts, etc.)
Incomplete presentation of facts (unknown what information
is required by requested country, etc.)
Operational barriers easier to remove and resolve

On-Going OECD Work


Proposals for removing operational barriers:
Compendium of information detailing each jurisdictions
approach to exchange information and information gathering
on behalf of other tax administrations

Country profile which could include:


Key features of the countrys legal system, administrative and
legal assistance perspective
Structure and competences of the relevant government
agencies who hold information relevant for tax investigations
Domestic mechanisms, legal pre-requisites, procedures etc. for
obtaining information, which may not be readily available
with the competent authority

On-Going OECD Work


Country profile (continued):
A list of taxes managed by the relevant authorities
The data sources and retention policy of relevant authorities
National requirements (for example such as an obligation to
formally notify the taxpayer) that need to be fulfilled before
answering to a request for information

Single point of contact for each country


A list of competent authorities or specialist officers with
experience in information gathering in the context of criminal
investigations

Development of a request template by each country


All information would be available through a secure internet portal hosted by the OECD

Questions and Contacts