OECD clarifies the commentary on Article 26 (exchange of information)
Peter von Burg
On February 19, 2024, the OECD Council updated the commentary on Article 26 of the OECD Model Tax Convention. It was clarified that information received in the context of administrative tax assistance can also be used in relation to unnamed persons.
On February 19, 2024, the OECD Council updated the commentary on Article 26 of the OECD Model Tax Convention. It was clarified that information received in the context of administrative tax assistance can also be used in relation to unnamed persons.
As part of the peer review process of the Global Forum on Transparency and Exchange of Information for Tax Purposes, the use of information received in the context of administrative assistance was discussed. The commentary on Article 26 of the OECD Model Tax Convention was incomplete in this context. The OECD Working Party on the Interpretation of the International Standard proposed a clarification, which was approved by the OECD Council(OECD information dated February 27, 2024).
The clarification allows a contracting state to use the information received in relation to any person without informing the transmitting state or requesting authorization. However, the use remains limited to tax purposes. In addition, the update includes guidelines on confidentiality, including taxpayers' access to the information and its use for statistical purposes.
This clarification will be implemented by the Federal Tax Administration (FTA) with immediate effect.
The SIF communication is available here.
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