The OECD Convention on the mutual administrative assistance in tax matters : the recent amendments and the change in dynamics following Switzerland’s signing

Abstract

The main objective of this thesis is to examine the problem of tax fraud and tax evasion in cross border transactions and how the OECD Convention on the Mutual Administrative in Tax Matters (the “Convention”) has helped combat this. This thesis will look into how the fact that Switzerland signed the Convention has affected the way we perceive information exchange in tax matters. I will be looking into the historical efforts that took place in order to tackle the problem of tax fraud and tax evasion and the importance of frameworks for exchange of information. Article 26 of the OECD Model Convention with respect to Taxes on Income and on Capital will also be looked into and this thesis will also assess the impact this has on providing a framework for tax treaties and double taxation treaties alike. This thesis acknowledges that the Convention is the main organ in place to combat tax fraud and tax evasion. It will delve into the 2010 Protocol and the main provisions of the Convention. Throughout this thesis, the methods of exchange of information available under the Convention shall also be discussed (e.g. exchange of information on request, spontaneous and automatic exchange of information etc.). During this thesis the Convention will be analysed in all its various aspects, such as scope, accession modalities, reservations, limitations etc. Switzerland has an international reputation for historically not adhering to international standards in exchanging information. This thesis will assess what lead to Switzerland changing its policy through becoming a party of the Convention and the way forward for Switzerland in the field of exchange of information in tax matters. The conclusion of this thesis will evidence how tax havens will be a thing of the past.