Organisational Aspects of Exchange of Information

Authority to Exchange Information

• Competent Authority

– Ministry of Finance or Tax Administration

– ensures co-operation and consistency– possible delegation of functions

Exchange of Information

Example of Key Responsibilities - EOI unitExample of Key Responsibilities - EOI unit

Processing exchange requests (specific, spontaneous, automatic, simultaneous audits, public information)

Collection Assistance

Negotiating Memorandums of Understanding with treaty partners

Processing travel requests to a foreign country

All requests are sent and reviewed by the Manager

Role of the tax auditor

All exchanges go through the competent authority, but the tax auditors are usually essential to the process. They are often responsible for:

– Collecting the information requested by a treaty partner– Requesting the competent authority obtain information

from a treaty partner in connexion with the management of audit work

– Providing information for spontaneous exchange– Receiving and acting on information received from a

treaty partner– Providing and using feedback

Importance of Training

• Informs auditors of their legal obligations and the opportunities they are offered by exchange of information

• Promotes exchange of information• Increases the number of exchanges

Training

• Offer to all parts of the organisation• Provide information in special

bulletins and reference guides• Conferences

Training – Subjects covered

• Structure and role of the exchange of operations unit

• Legal bases for exchange• Information that can be exchanged• Confidentiality rules• Obligations and limitations• Types of exchanges• Important information to provide when making a

request• Practical cases• Reference Guides available

How tax authorities encourage the exchange of information

• Training, case studies and materials• Field office visits• Recognition• Other methods

Discussion

• Discussion of how exchange of information work can be organized– How the competent authority unit is set

up– Training and awareness programs– Integration/relationship between EOI

unit and compliance functions– Issues encountered

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An example - Canada

Minister of National Revenue

Commissioner of the Canada Revenue Agency (CRA)

Compliance Programs Branch

Deputy Commissioner of CRA

International and Large Business Directorate

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Competent Authority Services - Canada

Exchange of Information Services

Mutual Agreement Procedures – Technical Cases

Competent Authority Programs Section

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