Updated Comments on Article 26 of the OECD Model Convention

In February 2024, the Council of the Organization for Economic Cooperation and Development (OECD) approved updated comments to Article 26 (Exchange of Information) of the OECD Model Convention. These changes aim to streamline the process of international tax cooperation and information exchange.

As a result of the update, technical amendments were made to align with the provisions of the Guidance on the Application of Confidentiality Provisions in the Convention on Mutual Administrative Assistance in Tax Matters and Article 26 of the OECD Model Convention, including comments from February 8, 2021.

Particular attention is given to the fact that information obtained through administrative assistance can be used for tax matters concerning individuals other than those originally provided, to the extent that it affects the outcome of a tax case involving such specific taxpayers. Rules and conditions for the exchange of information not pertaining to specific taxpayers, including statistical data on exchanged information or derived from it, which may be disclosed to third parties, are also established.

The OECD document released last year examines the benefits, conditions, and challenges of using information exchanged under double taxation avoidance agreements (DTAs) for non-tax purposes, including combating illegal financial flows. It proposes possible approaches to optimize and streamline this form of cooperation, based on experience gained through the Latin American Initiative. This is relevant for discussion in the context of the question: “How does this information become accessible?”

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