Research On The Legal Mechanisms Of Tax Information Exchange

With the economic globalization, the cross-border flowing of person and capital, the development of information technology and electronic commerce, international harmful tax competition has upgraded, international tax avoidance and evasion is running wild, and the means and methods for such international tax avoidance and evasion are increasingly diversified and hidden. International tax avoidance and evasion lead to the loss of national finance and tax revenue, do harm to tax fairness, distort capital flow and disrupt the normal operation of the world economy. Nations have taken measures to strengthen international cooperation in tax matters. Tax information exchange is recognized as the most effective way of administrative cooperation in tax matters.This thesis studies the legal mechanism of tax information exchange, using comparative analysis, by comparing the OECD and United Nation’s tax information exchange policies, the United States tax information exchange practical experience as well as the status of our tax information exchange, this thesis analyzes the existing problems in the international tax information exchange and our tax information exchange. Then, it puts forward suggestions on perfect legal mechanism of tax information exchange, which is expected to benefit our tax information exchange.Bilateral tax treaties, multilateral tax agreements and tax information exchange agreements are the basis of the information exchange for state parties, which constitute the basic legal framework for tax information exchange. However, the contradiction between bank secrecy and tax information exchange becomes more and more prominent, and the protection of the rights of taxpayers during the information exchange is highlighted. Coordination must be achieved in bank secrecy, taxpayer rights protection and the balanced development of tax information during the information exchange.In China, tax information exchange has started recently, with lack of practical experience, inadequate legal mechanism, lack of professional talents, and complex tax information exchange procedures. Especially, with the amendments of the OECD Model and the UN Model, China’s International Tax Information Exchange Rules is increasingly lagged behind. The OECD Model and the UN Model make it clear that the exchange of information is not restricted by Article1or Article2thereof. However, the scope of information exchange of China is limited to that of income tax as specified in the bilateral tax treaties and the International Tax Information Exchange Rules. The professional talent team is the prerequisite for the exchange of tax information development. Now in China the tax information system is not perfect, with lack of appropriate professionals. Tax information exchange is a comprehensive strong work, involving taxation theory, tax inspection, foreign language ability and so on. Those involved in such works shall be familiar with the laws, international principles and regulations involved in tax information exchange. Therefore, we should train a number of personnel with comprehensive, professional skills to meet the demand for tax information exchange.