These words appear in neither 2003 OECD Model article 26 nor 2005 OECD Model article 26.

However, the OECD Model TIEA provides for an override of any dual criminality requirement. article 5 (1) of the OECD Model TIEA (see para.

article 5 (1) of the OECD Model TIEA states

) Therefore, 2003 OECD article 26 and 2005 OECD article 26 provide a broader coverage than UN Model article 26.

Such words also appear in article 1 of the OECD Model TIEA.

The OECD Model TIEA (article 5 (4)) provides in effect for an override in certain instances of bank secrecy and other confidentiality rules (see the Commentary on the OECD Model TIEA, paras.

The OECD Model TIEA envisions exchange of information only on request the OECD Model TIEA and the Commentary thereunder do not provide for automatic exchange of information nor spontaneous exchange of information (but para.

The same definition appears in article 4 (1) (l) of the OECD Model TIEA.

The counterpart of the United Nations Model Tax Convention, the OECD Model Tax Convention (and its Commentary) was further amended in 2003 and 2005.

It is suggested that, in this regard, UN Model article 26 be modified to reflect the provisions of 2003 OECD article 26 and 2005 OECD article 26.

OECD is currently considering whether in the name of in article 5 (5) of the OECD Model Tax Convention could be interpreted also in an economic sense.

Therefore, in order to determine whether UN Model article 26 should be updated, it is advisable to review the changes in 2003 OECD article 26 made by the OECD Fiscal Committee in issuing 2005 OECD article 26.

(It should be noted that the OECD Model TIEA is only an exchange of information agreement it is not a comprehensive model income tax treaty.

Further, the OECD Fiscal Committee made the following additional changes in 2003 OECD article 26 (1), when it issued 2005 OECD article 26 (and it is suggested that those changes be made in UN Model article 26 (1))

UN Model article 26 is very similar to (but not the same as) 2003 OECD article 26.

2005 OECD article 26 (3) and the suggested revised UN Model article 26 (3) have similar language.

In that context, article 5 of the United Nations Model Tax Convention and article 5 of the OECD Model Tax Convention were examined and a comparison was drawn up.

Two non member countries have taken a contrary position to that of the OECD Commentary in this respect (para. 21 positions on the Commentary to article 5 of the OECD Model Tax Convention).

Some of the amendments to the OECD Model Tax Convention, however, include a narrowing of the requirements for constituting a permanent establishment.

Therefore, it is recommended that a clause similar to 2005 OECD article 26 (4) be added to UN Model article 26, as follows

In view of this, it is suggested that the following clause similar to article 5 (1) of the OECD Model TIEA be added to the United Nations Model Income Tax Treaty, as paragraph 26 (6)

(d) The addition of paragraph 4.5 to the OECD Commentary should be clarified further in that article 5 (3) of the text of the OECD Model Tax Convention is a special rule under the general rule of article 5 (1)

The amendments to the OECD Model Tax Convention and the Commentary thereon were further evaluated as to whether such amendments should also be reflected, or further improved, in the United Nations Model Tax Convention and Commentary.

Therefore, it is recommended that a clause similar to article 26 (5) of 2005 OECD article 26 be added to UN Model Income article 26, as follows

Source OECD.

The OECD Model TIEA (article 5 (2) and para. 43 of the Commentary thereon) also provides that a domestic tax interest requirement does not limit the obligation to exchange information.

OECD, Competition Law and Policy in Russia, an OECD Peer Review, p. 25 (2004).

(n) The interpretation of the wording in the name of (article 5 (5) of both the OECD and the United Nations Model Tax Conventions) in an economic sense should not be attempted.

Upon completion of this activity, trade data of OECD member countries will be processed by OECD only and will be included in OECD and Statistics Division databases simultaneously.

UN Model article 26 and the 2005 OECD article 26 also do not require spontaneous exchange of information but the Commentary on each of those two articles provides for spontaneous exchange of information.

The 2000 amendments to the Model Tax Convention on Income and on Capital of the Organization for Economic Cooperation and Development (OECD) were as it seems, taken into account in that 2001 amendment.

The Set and the OECD instruments all provide for cooperation on enforcement. The OECD instruments having influenced or been inspired by the bilateral enforcement agreements concluded among OECD countries.

Bright Outlook for Steel Industry in 2005 2006 Forecast at OECD IISI Conference , OECD, 17 January 2005.

1998 OECD report, chap. 3.

The OECD Model TIEA (introduction, para. 3) confirms that (t)he 1998 Report identified the lack of effective exchange of information as one of the key criteria in determining harmful tax practices (emphasis added).

Also, UN Model article 26 (1) states, in relevant part The exchange of information is not restricted by article 1. However, 2003 OECD article 26 and 2005 OECD article 26 are broader and state The exchange of information is not restricted by Articles 1 and 2. It is suggested that the relevant language in UN Model article 26 be modified to read as follows The exchange of information is not restricted by Articles 1 and 2.

OECD also developed several new manuals, such as Measuring productivity OECD manual Measurement of aggregate and industry level productivity growth in 2001 and OECD handbook on economic globalization indicators in 2005.

For this purpose, UNIDO collects this annual data directly from approximately 150 countries not members of OECD, while it receives data for OECD member countries through OECD to avoid duplication of efforts.

Estonia joined the OECD in 2010.

OECD has worked on this issue.

Mr. Andrea Goldstein, OECD Development Centre

OECD, Competition Law and Policy in Peru, an OECD Peer Review, pp. 21 25 (2004), also available at http www.indecopi.gob.pe .

A clause similar to 2005 OECD article 26 (5) and the suggested revised UN Model article 26 (5) would have no effective impact in this fact situation and therefore the result would be de facto bank secrecy.

Organization for Economic Cooperation and Development (OECD)

Organization for Economic Cooperation and Development (OECD)