IEIM210300 - Legal framework for exchange: Types of international agreement: The OECD/CoE Multilateral Convention on Mutual Administrative Assistance in Tax Matters

The OECD / Council of Europe Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) is a tax cooperation agreement between multiple jurisdictions. It was amended by Protocol in 2010 following calls for more transparency from the G20 –in particular this Protocol significantly widened the list of participants, by allowing that any jurisdiction could join with the agreement of the existing signatories. The UK is a signatory to the original convention, and has signed and ratified the Protocol.

There are currently over 140 jurisdictions who participate in the MAC, and a list of these is available on the OECD website.

The MAC provides for many forms of administrative cooperation to combat avoidance and evasion. This includes exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations, and assistance in collection of debts. The MAC can in theory cover exchanges relating to taxes of every kind and description.

It is also very versatile, in order that as many jurisdictions are able to become party to it on a basis they are comfortable with. To facilitate the versatility, it is possible for participating jurisdictions to put reservations on the MAC to limit things such as the taxes they will exchange on and the forms of assistance they will offer (such as assistance in collection). At the very minimum it will cover taxes on income and the three main forms of exchange and will almost certianly cover direct taxes.

IEIM210310 has guidance on taxes covered by the MAC, and IEIM210320 explains the periods for which information can be exchanged under the MAC.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

The MAC is brought into force in the UK through the International Mutual Administrative Assistance in Tax Matters Orders 2007 and 2011 (SI 2007/2126 and SI 2011/1079 respectively). These were made under the powers in FA06/s173.