If the transmitting State is to exchange information automatically with the receiving State, payors of income in the transmitting State must report automatically the relevant information to the transmitting State.

(a) Whether any changes should be made in the exchange of information obligations of the transmitting State (the State transmitting the information)

Therefore, in this fact situation, the transmitting State can comply with the exchange of information request of the transmitting State.

What information should the transmitting State normally receive from domestic sources in order that the transmitting State may be able to effectively exchange information with the receiving State?

(f) What information the transmitting State should normally receive from domestic sources in order that the transmitting State may be able to effectively exchange information with the receiving State

Changes in the obligations of the transmitting State to exchange information

If the transmitting State does not generally receive that information from payors of income by a method of automatic reporting, the transmitting State generally cannot exchange information automatically with tax treaty partners.

However, neither 2005 OECD article 26 nor the Commentary thereon actually requires the transmitting State to obtain information, and to have information available to it, in order for that transmitting State to be able to exchange information with the receiving State.

Automatic exchange of information would normally result in voluminous amounts of information, about residents, citizens or other taxpayers of the receiving State deriving income from sources in the transmitting State, being transmitted by the transmitting State to the receiving State ( transmitted information ).

UN Model article 26 (1) covers two separate issues (a) the obligations of the transmitting State to exchange information and (b) the obligations of the receiving State with regard to information received by the receiving State from the transmitting State.

Whether or nor the transmitting State has an automatic reporting system with regard to interest earned by foreign persons, the receiving State can provide to the transmitting State enough details for the transmitting State to obtain the relevant information from the payors of income.

Changes in the purposes for which the receiving State can use the information received from the transmitting State

In this way, the transmitting State attracts investments from foreign persons who know that, in the general case, the transmitting State will not have the relevant information to exchange with the receiving State.

Unfortunately for both, their main strengths transmitting information and connecting people happen to be what the Internet does best.

Even more crucial has been the enormous drop in the cost of transmitting information, which reduces barriers to entry.

(d) Whether the obligation to exchange information should override bank secrecy and other confidentiality laws in the transmitting State

2005 OECD article 26 modified that and treats separately each of these two issues, in two separate paragraphs article 26 (1) (obligations of the transmitting State to exchange information) and article 26 (2) (obligations of the receiving State with regard to information received from the transmitting State).

This would require the transmitting State to compile the relevant information based on the TIN used in the receiving State.

Even though the income tax treaty between the transmitting State and the receiving State may have an exchange of information clause similar to 2005 OECD article 26 overriding bank secrecy and other confidentiality laws in the transmitting State, in this situation the transmitting State cannot comply with the request of the receiving State.

It follows that the means of collecting, evaluating, and transmitting information must be shared and placed at the service of humankind.

(b) Whether any changes should be made in the purposes for which the receiving State (the State receiving the information) can use the information received from the transmitting State

However, the transmitting State may exempt from taxation in the transmitting State certain payments by payors of income located in that transmitting State to non residents and foreign companies not doing business in the transmitting State.

Peer to peer technologies make filtering more difficult, because they put nearly any consumer of information into the process of transmitting it.

The current global revolution is based on rapid technological advances that have dramatically decreased the cost of creating, finding, and transmitting information.

However, such payors of income would not be required to provide such information automatically to the tax authorities of the transmitting State.

Can the transmitting State validly claim that it engages in effective exchange of information if it permits such de facto bank secrecy?

(h) Note by the Secretary General transmitting the third annual report of the Information and Communication Technologies Task Force (E 2005 71)

(g) What practical steps the transmitting State and the receiving State should take in order to facilitate and improve effective exchange of information.

Harkening back to Susan Blackmore's talk, we now have a means of transmitting information with heredity and selection, and we know where that leads.

Therefore, the transmitting State would have to transmit to the receiving State the relevant information codified by the TIN used in the receiving State.

The transmitting State can place obstacles in the way of achieving an effective exchange of information with a tax treaty partner in spite of an exchange of information clause similar to 2005 OECD article 26.

The most significant recent development is that exchange of information provisions in tax treaties should override bank secrecy and other confidentiality laws in the transmitting State.

With regard to exchange of information on request, there are at least two possible situations in which the receiving State may want information about one of its residents, citizens or other taxpayers from the transmitting State.

The result is de facto bank secrecy in the transmitting State and because of such de facto bank secrecy in the transmitting State, the foreign person may attempt to evade any applicable tax in his her its country of residence, the receiving State, which does not receive the relevant information.

Consequently, the transmitting State may have no relevant information about the identity of those foreign persons or about the income paid by payors of income to such foreign persons.

No domestic tax interest requirement in the transmitting State

The transmitting State may not require those foreign persons to obtain a TIN or provide a TIN to such payors of income in the transmitting State.

Recognizing the role played by the administering Powers in transmitting information to the Secretary General in accordance with the terms of Article 73 e of the Charter of the United Nations,

Recognizing the role played by the administering Powers in transmitting information to the Secretary General in accordance with the terms of Article 73 e of the Charter of the United Nations,

Recognizing the role played by the administering Powers in transmitting information to the Secretary General in accordance with the terms of Article 73 e of the Charter of the United Nations,

Recognizing the role played by the administering Powers in transmitting information to the Secretary General in accordance with the terms of Article 73 e of the Charter of the United Nations,

Recognizing the role played by the administering Powers in transmitting information to the Secretary General in accordance with the terms of Article 73 e of the Charter of the United Nations,

Recognizing the role played by the administering Powers in transmitting information to the Secretary General in accordance with the terms of Article 73 e of the Charter of the United Nations,

One problem is that the receiving State can normally process such transmitted information only through a TIN used in the receiving State (rather than a TIN used in the transmitting State).

For example, the transmitting State may provide that foreign persons investing in the transmitting State can channel those investments through a foreign intermediary (a foreign financial institution) that agrees to comply with applicable know your customer requirements similar to those in the transmitting State.