Exchange of tax information with foreign competent authorities: what does it mean for business?

In the globalization period, international exchange of tax information becomes especially relevant, taking into account current tendencies in the implementation of a full set of the OECD recommendations and implementation of the BEPS Plan.

Aim of such exchange is to ensure compliance by taxpayers with uniform transparent tax rules to prevent tax evasion by transnational business.

Working out transfer pricing matters and international taxation, exchange of tax information with competent authorities of foreign countries is important and effective tool for protecting economic interests of the state and means of blocking double or discriminatory taxation.

The vast majority of special requests for tax information are directed to competent authorities of the: Republic of Cyprus, namely 32%, Switzerland - 18%, Great Britain - 9%, Germany and Luxembourg - 7% each, Netherlands, Italy and Spain - 5% each, other countries - 12%.

Analysis of received information based on results of such exchange is a tool for confirming or refuting existence of risks for taxpayers when they comply with requirements of tax legislation.

State Tax Service of Ukraine continuously works in direction of improving mechanisms of information exchange with foreign competent authorities in direction of the "Transfer pricing and international taxation", which is relevant in the view of European integration processes and importance of compliance with provisions of tax legislation, international conventions on the elimination of double taxation and administrative assistance in tax matters.