The Convention on Mutual Administrative Assistance in Tax Matters.

133 Pages·2008·0.87 MB·English

by  OECD

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001-002-999.fm Page1 Monday,February25,2008 3:29PM
The Convention on
Mutual Administrative
Assistance in Tax
Matters
TWENTIETH ANNIVERSARY EDITION
001-002-999.fm Page2 Monday,February25,2008 3:29PM
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work
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The OECD member countries are: Australia, Austria, Belgium, Canada, the
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Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand,
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This work is published on the responsibility of the Secretary-General of
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necessarily reflect the official views of the Organisation or of the governments
of its member countries.
Also available in French under the title:
La Convention concernant l'assistance administrative mutuelle en matière fiscale
ÉDITION DU XXÈME ANNIVERSAIRE
Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.
© OECD 2008
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3
PREFACE –

The Convention on Mutual Administrative Assistance in
Tax Matters:
The 20th Anniversary Edition
Preface

Twenty years have passed since the OECD and the Council of Europe member states
established the Convention on Mutual Administrative Assistance in Tax Matters. In
many ways, the Convention was ahead of its time. Today, it is assisting countries to
ensure that taxes are fairly assessed and collected: a task which has become more
difficult in an environment characterised by increased trade and financial liberalisation,
coupled with rapid advances in communication technologies.

The Convention is a unique multilateral instrument for international co-operation, and it
is open for signature by all the 54 countries which are members of the Council of Europe
or the OECD, or both.

The Convention also provides for a broad range of tools for tax administrations. It not
only facilitates the exchange of information, but also provides for assistance in tax
collection, which differentiates it from most bilateral tax treaties. It provides for
simultaneous tax examinations and participation in tax examinations in other countries.
Moreover, this instrument has a wide scope covering all taxes and plays a key role in the
exchange of information in the field of indirect taxes, especially at a time when VAT
fraud is an increasing concern.

THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008
4
– PREFACE

To protect the legitimate interests of taxpayers, the Convention guarantees full respect
for the confidentiality of information which is exchanged between tax authorities. Such
information must be treated with the same confidentiality by the receiving country as
information obtained under its own domestic laws, or the conditions of tax
confidentiality which apply in the country supplying the information if these conditions
are more strict. The information received under the Convention can also be used for
other purposes besides those related to tax co-operation, for example to counter money
laundering, provided certain conditions are met.

Currently there are thirteen Contracting Parties, and another five countries are in the
process of joining the Convention. The Coordinating Body meets annually to work on
improving the effectiveness and efficiency of the Convention. This Body is in the
process of designing a Model Memorandum of Understanding on Assistance in Tax
Collection.

During its first two decades of existence, the Convention has proved its value as an
effective tool to improve tax compliance. On this 20th anniversary, we call on those
Council of Europe and OECD member states which have not yet ratified the Convention
to do so rapidly so that they can benefit from its advantages.

Terry Davis Angel Gurría
Secretary General of the Council of Europe Secretary-General of the OECD

THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008
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TABLE OF CONTENTS–

Table of Contents
TEXT OF THE CONVENTION ON MUTUAL ADMINISTRATIVE
ASSISTANCE IN TAX MATTERS ....................................................................................... 9
Preamble ................................................................................................................................... 9
CHAPTER I - SCOPE OF THE CONVENTION .............................................................. 10
Article 1 - Object of the Convention and persons covered ............................................... 10
Article 2 - Taxes covered ................................................................................................. 10
CHAPTER II - GENERAL DEFINITIONS ....................................................................... 13
Article 3 - Definitions ...................................................................................................... 13
CHAPTER III - FORMS OF ASSISTANCE ...................................................................... 14
SECTION I - EXCHANGE OF INFORMATION ............................................................................ 14
Article 4 - General provisions .......................................................................................... 14
Article 5 - Exchange of information on request ............................................................... 14
Article 6 - Automatic exchange of information ............................................................... 15
Article 7 - Spontaneous exchange of information ............................................................ 15
Article 8 - Simultaneous tax examinations ....................................................................... 15
Article 9 - Tax examinations abroad ................................................................................ 16
Article 10 - Conflicting information ................................................................................ 16
SECTION II - ASSISTANCE IN RECOVERY ............................................................................... 16
Article 11 - Recovery of tax claims .................................................................................. 16
Article 12 - Measures of conservancy .............................................................................. 17
Article 13 - Documents accompanying the request .......................................................... 17
Article 14 - Time limits .................................................................................................... 17
Article 15 - Priority .......................................................................................................... 18
Article 16 - Deferral of payment ...................................................................................... 18
SECTION III - SERVICE OF DOCUMENTS ................................................................................ 18
Article 17 - Service of documents .................................................................................... 18
CHAPTER IV - PROVISIONS RELATING TO ALL FORMS OF ASSISTANCE ...... 20
Article 18 - Information to be provided by the applicant state ......................................... 20
THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008
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– TABLE OF CONTENTS

Article 19 - Possibility of declining a request .................................................................. 20
Article 20 - Response to the request for assistance .......................................................... 20
Article 21 - Protection of persons and limits to the obligation to provide assistance ....... 21
Article 22 - Secrecy .......................................................................................................... 22
Article 23 - Proceedings ................................................................................................... 22
CHAPTER V - SPECIAL PROVISIONS ............................................................................ 24
Article 24 - Implementation of the Convention ............................................................... 24
Article 25 - Language ....................................................................................................... 25
Article 26 - Costs.............................................................................................................. 25
CHAPTER VI - FINAL PROVISIONS ............................................................................... 26
Article 27 - Other international agreements or arrangements .......................................... 26
Article 28 - Signature and entry into force of the Convention ......................................... 26
Article 29 - Territorial application of the Convention ...................................................... 26
Article 30 - Reservations .................................................................................................. 27
Article 31 - Denunciation ................................................................................................. 28
Article 32 - Depositaries and their functions .................................................................... 28
Annex A - Taxes to which the Convention Applies………………………………..….30
AZERBAIJAN ................................................................................................................. 30
BELGIUM ........................................................................................................................ 31
DENMARK ...................................................................................................................... 32
FINLAND ........................................................................................................................ 36
FRANCE .......................................................................................................................... 38
ICELAND ........................................................................................................................ 40
ITALY .............................................................................................................................. 41
NETHERLANDS ............................................................................................................. 42
NORWAY ........................................................................................................................ 43
POLAND .......................................................................................................................... 45
SWEDEN ......................................................................................................................... 45
UNITED KINGDOM ....................................................................................................... 47
UNITED STATES ........................................................................................................... 47
Annex B - Competent Authorities…………………………………………………….48
AZERBAIJAN ................................................................................................................. 48
BELGIUM ........................................................................................................................ 48
DENMARK ...................................................................................................................... 48
FINLAND ........................................................................................................................ 48
FRANCE .......................................................................................................................... 48
ICELAND ........................................................................................................................ 49
ITALY .............................................................................................................................. 49
NETHERLANDS ............................................................................................................. 49
NORWAY ........................................................................................................................ 49
POLAND .......................................................................................................................... 50
THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008
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TABLE OF CONTENTS–

SWEDEN ......................................................................................................................... 50
UNITED KINGDOM ....................................................................................................... 50
UNITED STATES ........................................................................................................... 50
Annex C - Definition of the word "national" for the purpose of
the Convention…………………………………………………………..……………...51
AZERBAIJAN ................................................................................................................. 51
BELGIUM ........................................................................................................................ 51
DENMARK ...................................................................................................................... 51
FINLAND ........................................................................................................................ 51
FRANCE .......................................................................................................................... 51
ICELAND ........................................................................................................................ 51
ITALY .............................................................................................................................. 51
NETHERLANDS ............................................................................................................. 52
NORWAY ........................................................................................................................ 52
POLAND .......................................................................................................................... 52
SWEDEN ......................................................................................................................... 52
UNITED KINGDOM ....................................................................................................... 52
UNITED STATES ........................................................................................................... 52
Declarations and Reservations…………………………...……………………………54
AZERBAIJAN ................................................................................................................. 53
BELGIUM ........................................................................................................................ 53
DENMARK ...................................................................................................................... 54
FRANCE .......................................................................................................................... 54
ICELAND ........................................................................................................................ 55
ITALY .............................................................................................................................. 55
NETHERLANDS ............................................................................................................. 56
NORWAY ........................................................................................................................ 58
POLAND .......................................................................................................................... 58
UNITED KINGDOM ....................................................................................................... 59
UNITED STATES ........................................................................................................... 60
EXPLANATORY REPORT ................................................................................................. 61
INTRODUCTION ................................................................................................................... 62
COMMENTARY ON THE PROVISIONS OF THE CONVENTION .............................................. 63
CHAPTER I – SCOPE OF THE CONVENTION .............................................................. 63
Article 1 - Object of the Convention and persons covered ............................................... 63
Article 2 – Tax covered .................................................................................................... 66
CHAPTER II – GENERAL DEFINITIONS ....................................................................... 70
Article 3 – Definitions ...................................................................................................... 70
CHAPTER III – FORMS OF ASSISTANCE ..................................................................... 73
THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008
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– TABLE OF CONTENTS

SECTION 1 – EXCHANGE OF INFORMATION ........................................................................... 73
Article 4 – General provision ........................................................................................... 73
Article 5 – Exchange of information on request .............................................................. 76
Article 6 – Automatic exchange of information ............................................................... 77
Article 7 – Spontaneous exchange of information ........................................................... 79
Article 8 – Simultaneous tax examination........................................................................ 80
Article 9 – Tax examinations abroad ............................................................................... 82
Article 10 – Conflicting information ................................................................................ 85
SECTION II – ASSISTANCE IN RECOVERY .............................................................................. 85
Article 11 – Recovery of tax claims ................................................................................. 87
Article 12 – Measures of conservancy ............................................................................. 91
Article 13 – Documents accompanying the request ......................................................... 92
Article 14 – Time-limits ................................................................................................... 93
Article 15 – Priority .......................................................................................................... 96
Article 16 – Deferral of payment ..................................................................................... 97
SECTION III – SERVICE OF DOCUMENTS ............................................................................... 98
Article 17 – Service of documents ................................................................................... 98
CHAPTER IV – PROVISIONS RELATING TO ALL FORMS OF ASSISTANCE .... 101
Article 18 – Information to be provided by the applicant State ..................................... 101
Article 19 – Possibility of declining a request ................................................................ 102
Article 20 – Response to the request for assistance........................................................ 103
Article 21 – Protection of persons and limits to the obligation to provide assistance .... 104
Article 22 – Secrecy ....................................................................................................... 108
Article 23 – Proceedings ................................................................................................ 112
CHAPTER V – SPECIAL PROVISIONS ......................................................................... 116
Article 24 – Implementation of the Convention ............................................................. 116
Article 25 – Language .................................................................................................... 121
Article 26 – Costs ........................................................................................................... 122
CHAPTER VI – FINAL PROVISIONS ............................................................................ 123
Article 27 – Other international agreements or arrangements ........................................ 123
Article 28 – Signature and entry into force of the Convention....................................... 124
Article 29 – Territorial application of the Convention ................................................... 124
Article 30 – Reservations ............................................................................................... 124
Article 31 – Denunciation .............................................................................................. 127
Article 32 – Depositaries and their functions ................................................................. 127
STATUS OF THE CONVENTION ON MUTUAL ADMINISTRATIVE
ASSISTANCE IN TAX MATTERS ................................................................................... 129
THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008
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PREAMBLE –

TEXT OF THE CONVENTION ON MUTUAL ADMINISTRATIVE
ASSISTANCE IN TAX MATTERS
Preamble
The member States of the Council of Europe and the member countries
of the Organisation for Economic Co-operation and Development (OECD),
signatories of this Convention,
Considering that the development of international movement of persons,
capital, goods and services - although highly beneficial in itself - has
increased the possibilities of tax avoidance and evasion and therefore
requires increasing co-operation among tax authorities;
Welcoming the various efforts made in recent years to combat tax
avoidance and tax evasion on an international level, whether bilaterally or
multilaterally;
Considering that a co-ordinated effort between States is necessary in
order to foster all forms of administrative assistance in matters concerning
taxes of any kind whilst at the same time ensuring adequate protection of the
rights of taxpayers;
Recognising that international co-operation can play an important part in
facilitating the proper determination of tax liabilities and in helping the
taxpayer to secure his rights;
Considering that fundamental principles entitling every person to have
his rights and obligations determined in accordance with a proper legal
procedure should be recognised as applying to tax matters in all States and
that States should endeavour to protect the legitimate interests of taxpayers,
including appropriate protection against discrimination and double taxation;
Convinced therefore that States should not carry out measures or supply
information except in conformity with their domestic law and practice,
having regard to the necessity of protecting the confidentiality of
information, and taking account of international instruments for the
protection of privacy and flows of personal data;
Desiring to conclude a convention on mutual administrative assistance
in tax matters;
Have agreed as follows:
THE CONVENTION ON MUTUAL ADMINISTRATIVE ASSISTANCE IN TAX MATTERS – ISBN-978-92-64-04103-5© OECD 2008