Tax Information Exchange Developments

Pavlo V. Khodakovskyy, Ganna S. Demchenko

In recent years international exchange of information for tax purposes has become an important issue considered by major players on the international tax policy arena.

The ubiquitous globalization of almost all the processes in the world literally erased boundaries for business, which became mobile and so possesses plenty of tools for tax planning, sometimes aggressive,  as well as tax evasion and tax fraud. On the other hand, tax and controlling bodies remain locally attached and, thus, limited in their powers. Therefore, international exchange of information becomes a crucial issue to ensure tax compliance of business, as well as protection of each of the interested jurisdictions’ rights to tax earnings...