Tax Information Exchange with Developing Countries and Tax Havens

Braun, Julia and Zagler, Martin ORCID: (2015) Tax Information Exchange with Developing Countries and Tax Havens. WU International Taxation Research Paper Series, 2015-25. WU Vienna University of Economics and Business, Universität Wien, Vienna.


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The exchange of tax information has received ample attention recently, due to a number of recent headlines on aggressive tax planning and tax evasion. Whilst both participating tax authorities will gain when foreign investments (FDI) are bilateral, we demonstrate that FDI receiving nations will lose in asymmetric situations. We solve a bargaining model that proves that tax information exchange will only happen voluntarily with compensation for this loss. We then present empirical evidence in a global panel and find that a tax information exchange agreement (TIEA) or a double tax treaty with information exchange (DTT) is more likely when the capital importer is compensated through official development assistence (ODA). We finally demonstrate how the foreign account tax compliance act (FATCA) and similar international initiatives bias the bargaining outcome in favour of capital exporting countries. (authors' abstract)

Item Type: Paper
Additional Information: Editors: Eva Eberhartinger, Michael Lang, Rupert Sausgruber and Martin Zagler (Vienna University of Economics and Business), and Erich Kirchler (University of Vienna).
Keywords: developing countries / tax havens / tax information exchange agreements / Entiwcklungsländer / Steuerparadies / Informationsaustausch / Rechtshilfeabkommen / Doppelbesteuerungsabkommen / Tarifverhandlungsmodelle
Classification Codes: RVK QL 530, QL 840, QL 410; JEL K33, F53, H25, H87, D82
Depositing User: ePub Administrator
Date Deposited: 05 Nov 2015 10:09
Last Modified: 31 Oct 2019 13:08


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