IEIM120100 - Exchange of Information: Inward requests
Where the UK has signed an exchange agreement with another jurisdiction, we have undertaken that HMRC will provide information to that jurisdiction. An overview of exchange on request is at IEIM102100.
All inward requests will be reviewed by a UK Competent Authority to check that they meet the requirement of the exchange agreement, and comply with the law; if necessary they will clarify any points of difficulty with the requesting jurisdiction.
Where the information is publicly available or held on a database or other source they have access to, the Competent Authority will reply directly. If not, they will contact the Customer Compliance Manager (CCM) or other officer responsible for the case to find out what information HMRC holds on file.
Where appropriate the Competent Authority will ask the CCM or caseworker to obtain information directly from the UK customer, or do so themselves if there is no one responsible for the case. This may involve using information powers. It does not matter that the information is not needed by HMRC, and there are specific provisions in our information powers allowing us to use them to meet our obligations under exchange agreements (IEIM120150).
What you can and cannot tell the customer when making the request is covered in IEIM120120.
Example
Mr T, a resident of Jurisdiction Y, claims to the tax authorities in Jurisdiction Y that he lives on loans from family members. Their investigations, however, show him receiving payments into his bank account from a UK company. A request is made to the UK for information about the company and to establish the nature of the payments made to Mr T. The UK Competent Authority reviews the request and writes to the company with questions to establish the facts requested.