OECD STANDARDS ON EXCHANGE OF TAX INFORMATION TO COMBAT TAX EVASION

Abstract

The article is dedicated to the Organization for Economic Cooperation and Development standards on the exchange of tax information, as well as their significance; the author analyzes some provisions of the OECD Model Convention on Taxes on Income and Capital, the principles of exchange of tax information recommended by the OECD, the features of disclosure of bank secrecy when exchanging tax information, as well as the experience of some countries in approaches to disclosure of bank secrecy, common tax evasion schemes, their stages and gives examples. The author also pays considerable attention to the analysis of types of exchange of tax information according to OECD standards.The article also focuses on new methods for increasing the efficiency of tax information exchange, some problematic aspects of international tax cooperation, and proposals for improving international cooperation between tax authorities of different countries. The OECD standards on the exchange of tax information contribute to increasing the transparency of international taxation and combating tax evasion, which has significantly complicated the use of offshore jurisdictions for tax evasion, allowed countries to divert huge amounts of tax revenues to their budgets and reduce budget losses associated with tax evasion, and have also effectively forced many jurisdictions to abandon strict bank secrecy, and some countries that were previously considered «tax havens» were forced to adapt their legislation. The author provides various examples of tax evasion schemes and tax information exchange. And in general, the OECD standards on the exchange of tax information have significantly increased the level of transparency in the field of international taxation and have contributed to strengthening international cooperation. However, some countries and jurisdictions have not yet joined the OECD standards or are implementing them with a delay. It leaves loopholes for unscrupulous taxpayers, there are also high costs of implementing and administering the standards, and increased reporting requirements create an additional burden on financial institutions.