Exchange of information between jurisdictions in income tax issues

Abstract

Over the past two decades, the world has increasingly become a borderless one. Globalization has facilitated the means through which taxpayers obtain, hold and control investments located outside their country of residence. Substantial amounts of funds are kept offshore, going untaxed, which is negatively affecting the home jurisdictions of these taxpayers. The current political atmosphere has driven the push for greater fiscal transparency between jurisdictions. The frameworks for EoI on tax matters, between jurisdictions have been amended in the recent years, with the scope of clamping down on tax evasion and increasing the amount of tax revenue collected. Amidst the ever enhancing transparent world and the rise in states’ rights to EoI, lies the taxpayer. The issue of protection of taxpayers’ rights in the area of EoI is of paramount importance, as at the centre of the exchanges, lies a private individual, the taxpayer.