Moving towards more transparent tax rulings: analysis of the international legal framework regarding the exchange of information on tax rulings

Abstract

The use of tax rulings for tax avoidance purposes has become a major global concern as it has become patent that these agreements allow multinational enterprises to artificially reduce their tax burden. As a result, international organizations at all levels have entered a regulatory process that intends to limit such use, mostly by making these tax arrangements more transparent through their exchange between states. In this context, the present dissertation studies the international legal framework applicable to the EU Member States regarding the exchange of information on tax rulings. This study is mainly developed through the analysis of two of the most important international instruments on the matter, the OECD BEPS Action 5, and the EU Directive 2015/2376. Through this analysis, we can identify the main characteristics of the exchange systems set forth in each of these instruments, the practical difficulties that the coexistence of both exchange systems entails, and also study the impact they have had on the tax ruling practice in EU countries.