In the last decade, there have been major developments in the areas of the exchange of tax information and data protection. Technological developments have facilitated the processing of personal data and led to more efficient tax administration and tax enforcement, as well as a substantial increase in the volume of personal data processing. This book provides a comprehensive overview of the main developments, as well as the structure and content of the various instruments for exchange of information. In particular, the exchange of information under double taxation treaties, TIEAs, the CoE/OECD Convention on Mutual Administrative Assistance in Tax Matters and EU directives is addressed. The scope and procedure of recently adopted automatic exchange of financial account information, tax rulings and CbC reporting are laid down in a detailed manner. In the area of data protection, the General Data Protection Regulation was adopted in 2016 and entered into force on 25 May 2018. It replaces the Data Protection Directive and further harmonizes data protection in the European Union. What is more, the ECJ has stressed the importance of data protection in some high-profile cases. This book examines the most important existing data protection guarantees in the European Union. The analyses in this book of article 8 of the ECHR, article 8 of the CFR, the DPD and the GDPR focus on the level of data protection and the specific guarantees recognized by the European Court of Human Rights and the Court of Justice of the European Union, in particular those aspects that could be critical when it comes to the exchange of information in tax matters. We can observe an expansion of both data protection and the exchange of information. These two fields of law, however, are not always easy to align with each other. This book analyses whether the scope of exchange of information is in line with the data protection requirements in the European Union and how exchange of information provisions have to be designed in order to be compliant with EU data protection guarantees.
Author(s): Viktoria Wohrer
Series: European and International Tax Law and Policy Series Vol 10
Publisher: IBFD
Year: 2019
Language: English
Pages: 504
Tags: Data Protection, Taxpayers’ Rights, Automatic Exchange Of Information
Cover......Page 1
Title......Page 4
Copyright......Page 5
Preface......Page 14
List of Abbreviations......Page 16
Chapter 1: Introduction......Page 20
Chapter 2: Why Do We Need Information Exchange?......Page 24
3.1. Introduction......Page 30
3.2.1.1. Early developments......Page 31
3.2.1.2. 1927 Model Tax Conventions......Page 33
3.2.1.3. Proposal for automatic exchange of information......Page 35
3.2.1.4. 1946 London and 1943 Mexico Model Tax Conventions......Page 36
3.2.2.1. First OECD Model of 1963......Page 39
3.2.2.2. OECD Model of 1977......Page 45
3.2.2.3. The 2000 update to the OECD Model......Page 50
3.2.2.4. OECD report on Harmful Tax Competition (1998)......Page 51
3.2.2.5. OECD report on Improving Access to Bank Information (2000)......Page 52
3.2.2.6. OECD Model Agreement on Exchange of Information on Tax Matters (2002)......Page 53
3.2.2.7. The 2005 update to the OECD Model......Page 59
3.2.2.8. Global Forum......Page 62
3.2.2.9. The 2012 update to the OECD Model......Page 64
3.2.2.10. Model Protocol for the Purpose of Allowing the Automatic and Spontaneous Exchange of Information under a TIEA (2015)......Page 67
3.2.3.1. United Nations Model Double Taxation Convention between Developed and Developing Countries (1980)......Page 69
3.2.3.2. The 2011 update to the UN Model......Page 70
3.2.3.3. The 2017 update to the UN Model......Page 71
3.2.4. Summary: Bilateral exchange of information......Page 72
3.3.1. CoE/OECD Convention on Mutual Administrative Assistance in Tax Matters (1988)......Page 73
3.3.2. Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters (2010)......Page 79
3.3.3. OECD Common Reporting Standard (2014)......Page 80
3.3.4. BEPS Action 5: Exchange of tax rulings (2015)......Page 87
3.3.5. BEPS Action 13: Country-by-country reporting (2015)......Page 89
3.4.1. Mutual Assistance Directive (1977)......Page 93
3.4.2. Administrative Cooperation Directive (2011)......Page 97
3.4.3. Savings Directive (2003)......Page 101
3.4.4. Amendments to the Savings Directive (2014) and repeal of the Savings Directive (2015)......Page 104
3.4.5. Automatic exchange of financial account information under the DAC (2014)......Page 105
3.4.6. Fourth Anti-Money Laundering Directive (2015)......Page 110
3.4.7. Access to AML information by tax authorities......Page 112
3.4.8. Fifth Anti-Money Laundering Directive......Page 113
3.4.9. Automatic exchange of tax rulings under the DAC......Page 114
3.4.10. Automatic exchange of CbC reports under the DAC......Page 117
3.4.11. Public CbC reporting......Page 119
3.4.12. Automatic exchange of information on reportable cross-border arrangements......Page 120
3.4.13. Summary: Exchange of information in the European Union......Page 122
3.5. Scope of exchange of information: Steadily increasing?......Page 123
4.1. Introduction......Page 130
4.2.1. General framework......Page 132
4.2.2. Who has to report: Reporting financial institutions......Page 134
4.2.3. Accounts subject to reporting: Reportable accounts......Page 137
4.2.4. Information to be reported: Reportable information......Page 143
4.2.5. Summary......Page 146
4.3.1. General framework......Page 147
4.3.2. Which rulings are subject to reporting?......Page 150
4.3.3. Who will receive the information?......Page 155
4.3.4. Which information has to be reported?......Page 156
4.3.5. Summary......Page 158
4.4.1. General framework......Page 160
4.4.2. Who has to report?......Page 161
4.4.4. Which information has to be reported?......Page 164
4.4.5. Summary......Page 167
4.5.1. General framework......Page 170
4.5.2. Who has to report?......Page 174
4.5.3. Which information has to be reported?......Page 175
4.5.4. Summary......Page 179
4.6.1. General framework......Page 181
4.6.2. Who has to report?......Page 183
4.6.3. Which information has to be reported?......Page 184
4.6.4. Summary......Page 186
4.7. Conclusion......Page 187
5.1. Introduction......Page 190
5.2. Risk of disclosure creates an “uneasy feeling”......Page 192
5.3. Risk of exchange of false information: The Aloe Vera case......Page 195
5.4. Risk of using information for other purposes......Page 199
5.5. Risk of an increasing number of tax disputes......Page 201
5.6.2. Confidentiality provisions......Page 203
5.6.3. Procedural rights......Page 205
5.6.4. Data protection in the DAC......Page 209
5.7. Conclusion......Page 214
6.1. Introduction......Page 218
6.2.1. Introduction......Page 223
6.2.2. Scope of application of the ECHR......Page 225
6.2.3. Personal scope......Page 226
6.2.4. Scope of data protection under article 8 of the ECHR......Page 230
6.2.5. The need for a legal basis......Page 234
6.2.6. The need for a legitimate purpose......Page 238
6.2.7. The need for a proportionality assessment......Page 241
6.2.8. Procedural rights......Page 249
6.2.9. Summary: Data protection under the ECHR......Page 251
6.3.1. Introduction......Page 253
6.3.2.1. DPD: Not outside the scope of Community law......Page 256
6.3.2.2. GDPR: Not outside the scope of Union law......Page 261
6.3.2.3. Territorial scope......Page 263
6.3.2.4. Transfer of data to third countries......Page 266
6.3.3. Personal scope......Page 269
6.3.4. Scope of data protection under the DPD and under the GDPR......Page 272
6.3.5. The need for a legal basis......Page 275
6.3.6. The need for a legitimate purpose......Page 281
6.3.7. The need for a proportionality assessment......Page 286
6.3.8.1. Right to be informed about data processing......Page 291
6.3.8.2. Right of access to the data......Page 294
6.3.8.3. Right to rectification and erasure......Page 296
6.3.8.5. Communication of a personal data breach to the data subject......Page 298
6.3.8.6. Restrictions of procedural rights......Page 300
6.3.9. Summary: Data protection under the DPD and the GDPR......Page 301
6.4.1. Introduction......Page 303
6.4.2. Scope of application of the CFR......Page 306
6.4.3. Personal scope......Page 314
6.4.4. Scope of data protection under article 8 of the CFR......Page 317
6.4.5. The need for a legal basis......Page 319
6.4.6. The need for a legitimate purpose......Page 322
6.4.7. The need for a proportionality assessment......Page 323
6.4.8. Procedural rights......Page 330
6.4.9. Summary: Data protection under the CFR......Page 331
6.5. Conclusion......Page 332
7.1. Introduction......Page 336
7.2.1. Exchange of information between two EU Member States......Page 337
7.2.2. Exchange of information involving third states......Page 342
7.3.1. Is tax data personal data?......Page 347
7.3.2. Is data of legal persons covered by the personal scope?......Page 349
7.3.3. Is automatic exchange of information covered by the personal scope?......Page 352
7.4.1. Introduction......Page 357
7.4.2. Collection of tax information......Page 360
7.4.3. Information exchange for tax purposes......Page 362
7.4.4. Use of exchanged information......Page 363
7.4.5. Storage of exchanged tax information......Page 365
7.4.6. Conclusion......Page 366
7.5. The need for a legal basis......Page 368
7.6. The need for a legitimate purpose......Page 375
7.7.1. Introduction......Page 382
7.7.2.1. Introduction......Page 387
7.7.2.2. Proportionality of the number of accounts covered......Page 388
7.7.2.3. Proportionality of the scope of financial information covered......Page 393
7.7.2.4. Proportionality of the number of receiving jurisdictions......Page 397
7.7.2.5. Summary: Collection and exchange of financial account information......Page 401
7.7.3. Use of exchanged information......Page 403
7.7.4. Storage of exchanged tax information......Page 405
7.8.1. Right to be informed about exchange of information......Page 407
7.8.2. Right of access to the data......Page 412
7.8.3. Right to rectification and erasure......Page 413
7.9. Conclusion......Page 414
8.2. Automatic exchange of information......Page 420
8.3. Why do we need exchange of information?......Page 425
8.5. Data protection guarantees......Page 426
8.6. Compatibility of exchange of information with data protection......Page 430
Books......Page 436
Journal articles and book chapters......Page 438
Papers, surveys, documents and reports......Page 463
Court of Justice of the European Union......Page 468
European Court of Human Rights......Page 474
Domestic courts......Page 478
Legislation......Page 480
EU......Page 487
European Commission......Page 488
European Data Protection Supervisor......Page 491
European Parliament......Page 492
Financial Action Task Force (FATF)......Page 493
League of Nations......Page 494
United Nations......Page 495
OECD......Page 497
Other Titles in the WU Institute for Austrian and International Tax Law – Tax Law and Policy Series......Page 504
