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Taxing Crime
and formal exchange of information available to each agency, facilitating access of the special investigative units to international cooperation. 4.2 Using Tax Transparency Instruments in Prosecuting Money Laundering and Corruption
4.2.1 Overview of the Main Tax Transparency Instruments Effective exchange of information and overall tax transparency are essential to combat tax crimes. Since publication of the 1998 Organisation for Economic Co-operation and Development (OECD) report Harmful Tax Competition (OECD 1998), efforts to address the role of secrecy in facilitating tax crimes have culminated in the development of Exchange of Information on Request (EOIR) and Automatic Exchange of Information (AEOI) standards. The implementation of these standards by countries is reviewed and monitored by the Global Forum on Transparency and Exchange of Information for Tax Purposes, with the support of the OECD. The standards on EOIR are implemented through bilateral tax treaties, tax information exchange agreements (TIEAs),1 and the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MCMA).2 The standard on AEOI is implemented through the Common Reporting Standards Multilateral Competent Authority Agreement (CRS MCAA).3 Competent Authority Agreements (CAAs)4 can be used for either EOIR or AEOI purposes. Countries often conclude bilateral tax treaties to eliminate double taxation, allocate taxing rights, prevent the avoidance or evasion of taxes, and facilitate the exchange of information between tax authorities. Article 26 of both the OECD Model Tax Convention and the UN Model Tax Convention governs exchange of information between competent tax authorities to enable administration or enforcement of domestic tax laws. It can be either on request, spontaneous, or automatic, as described shortly. This information is not limited to taxpayer-specific information and can include other sensitive information related to tax administration and compliance improvement.5 The MCMA, drafted in 1988 by the OECD and the Council of Europe and revised in 2010, is a multilateral agreement to promote international cooperation between countries in the assessment and collection of taxes with a view toward combating tax avoidance and evasion. With 137 participating jurisdictions, it is used as an instrument for all forms of tax cooperation. The MCMA provides for all forms of mutual assistance, including simultaneous tax examinations, tax examinations abroad, exchange of information (in all forms), service of documents, and assistance in recovery of taxes. Article 26 of the OECD Model Tax Convention (MTC) and the MCMA provide the basis for all forms of information exchange (OECD 2014). The CRS MCAA is a multilateral instrument that facilitates AEOI. It sets out the financial account information to be exchanged, the financial institutions
