New Technologies in International Law / Tymofeyeva, Crhák et al.

disproportionately affect certain countries, implementing the recommended adjustments may be challenging due to these countries’ limited resources. 396 Relations between tax administrations of most countries tend to become more multilateral, thanks to common standards and resources such as the Common Reporting Standard (CRS) and other instruments. 397 This requires additional support for the developing countries. 3.2 Exchange of Information (EOI) From the standpoint of international law, information exchange in tax affairs has become a cornerstone of worldwide efforts to improve transparency and combat tax evasion. A structure of bilateral and international agreements, including Double Taxation Agreements and Tax Information Exchange Agreements, governs this practice 398 . These treaties are reinforced by global standards established by organizations such as the OECD 399 and the UN 400 . The OECD’s introduction of the Common Reporting Standard (CRS), which mandates the automated transmission of financial account information between participating nations, has been a significant development in this area. This global program intends to combat cross-border tax evasion by giving tax authorities access to financial data on their inhabitants’ assets and income held in other jurisdictions. 401 Effective involvement necessitates significant administrative ability and technology infrastructure. Furthermore, developed countries may benefit more from international information exchange due to their advanced technology and software, potentially resulting in higher revenue gains. Developing countries may not always have the administrative capacity and knowledge to deal with tax audits arising from the exchange of information that may involve complex transfer pricing issues or complex aggressive tax schemes. 402 Concerns have been also raised regarding these countries’ readiness to fulfill the compliance expenses and technical requirements. Questions of data privacy and the need to reconcile taxpayer rights with enforcement objectives add another layer of complication, particularly in areas with weaker data protection regulatory frameworks. Yet, influencial stakeholders such as Masatsugu Asakawa, President of the Asian Development Bank (ADB), has emphasized the importance of tax transparency and the EOI standards. Asakawa advocates for the effective implementation of these measures across region, highlighting their significance as tools in combating fiscal malpractices. 403 396 ILA, Sadowsky, p. 54. 397 Ibid., p. 91. 398 Individual treaties are available online in the United Nations Treaty Collection, https://treaties.un.org/. 399 OECD, Exchange of Information . . 400 UN, Exchange of Information. . 401 OECD, Automatic Exchange Portal. Common Reporting Standard . . 402 Valderrama IJM, ‘Legitimacy and the Making of International Tax Law: The Challenges of Multilateralism’ (2015) 7(3) World Tax Journal 344. 403 Asia Initiative, ‘Tax Transparency in Asia 2023: Asia Initiative Progress Report’, (2023), , p. 49.

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