This lesson examines the EOIR standard, the traditional form of tax information exchange that requires a specific request from one tax authority to another for information relating to a particular taxpayer. It covers the legal basis, the scope of information that can be requested, and the peer review process that monitors compliance.

• The EOIR Standard: The EOIR standard requires that information that is “foreseeably relevant” for tax purposes be available and accessible to tax authorities . This includes information on the identity of the legal and beneficial owners of assets, companies, and accounts . Tax authorities can then exchange this information with tax authorities in other jurisdictions on the basis of an international agreement .

• Legal Instruments for EOIR: Tax information exchange can take place under bilateral arrangements, such as tax treaties based on the OECD Model Tax Convention (Article 26), or the OECD’s Model Tax Information Exchange Agreement (Model TIEA), which was first developed in 2002 . The multilateral Convention on Mutual Administrative Assistance in Tax Matters also provides a legal basis for EOIR .

• Peer Review and Monitoring: The Global Forum monitors and peer reviews the implementation of the international standards of Exchange of Information on Request (EOIR) . The peer review process assesses whether jurisdictions have the legal framework and administrative capacity to effectively exchange information on request .

• Confidentiality as a Cornerstone: The legal framework for EOIR imposes strict confidentiality obligations on both the requesting and requested jurisdictions. Provisions in tax treaties, TIEAs, and other exchange agreements require that the confidentiality of exchanged information be maintained and that its use be restricted to intended purposes .