IEIM112200 - Exchange of Information: Outward requests: What can I tell the customer?

Where HMRC has requested information from our treaty partners we do not need to advise the customer of this, but there is no harm in doing so if the Customer Compliance Manager (CCM) or caseworker considers it appropriate. It may, for example, help the UK enquiries if the customer knows that the information will be obtained in any case through exchange of information. It is best practice to ask the customer for the information first. Usually it is only when we have exhausted our domestic powers (IEIM112300) that we can make a request to a treaty partner.

The decision to exchange information is always made by the Competent Authority (IEIM101400) on behalf of the caseworker. You should not give any commitment to notify the customer each time an exchange is made, and nor should you discuss the detail of any exchange –though as noted you may choose to tell them that it is going to happen.

What you can pass on to the customer

When information is received in response to the outward request, the Competent Authority will advise on whether the information can be disclosed. Information is treated as secret in the same way as any other customer confidential information. Most treaties and other agreements provide that information can be shown to persons or authorities concerned with the assessment or collection of tax. This includes courts and the information can be disclosed in public court proceedings (IEIM101800).

Information received can also be shown to the customer and discussed with them as they are affected by the assessment or collection of tax, but you cannot always provide copies of any documents received.

Copies of documents and papers should only be provided to the customer if they are items that belong to them anyway, such as invoices issued by them or contracts they have signed. Under UK data protection law, individuals have a right to see certain information about themselves, but this is not the case in all jurisdictions and you should check with a Competent Authority if you are challenged, to ensure that the terms of the agreement the information was provided under are respected.