The EU Protection of Tax Data Transferred to Third Countries

Abstract

Exchange of information is interwoven with the worldwide income taxation principle. Residence-countries taxing their residents on income produced both domestically and abroad need the cooperation of source-countries to obtain information about income produced by their residents in those countries. By neutralising the more advantageous effect of no or low taxation in the foreign jurisdiction, a residence-country actually is in a position to claim to subject foreign income to control through exchange of information and administrative cooperation.