Skip to main content

2020 | OriginalPaper | Buchkapitel

15. Cross-Border Big Data Flows and Taxpayer Privacy

verfasst von : Arthur J. Cockfield

Erschienen in: Ethics and Taxation

Verlag: Springer Singapore

Aktivieren Sie unsere intelligente Suche um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

In the last ten years, governments have initiated several reforms to automatically exchange bulk taxpayer information with other governments (mainly via the Foreign Account Tax Compliance Act, the Common Reporting Standard and Country-by-Country Reporting). This enhanced sharing of tax information has been encouraged by technology change, including digitization, big data, and data analytics, and political trends, including government efforts to reduce offshore tax evasion and aggressive international tax avoidance. In some cases, however, legal protections for taxpayer privacy and other interests are insufficiently robust for this emerging international framework to share big tax data. Conceptually, taxpayers should be seen as ‘data subjects’ with rights proactively protected by data protection laws and policies, including fair information practices. An optimal regime balancing the interests between taxpayers and tax authorities should include a multilateral taxpayer bill of rights, a cross-border withholding tax in lieu of information exchange, and a global financial registry to allow governments to identify the beneficial owners of business and legal entities.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Fußnoten
1
A revised version of this chapter will be published by the Canadian Tax Journal. For instance, under Canadian tax law, a double dip cross-border financing structure, with the use of a tax haven-based financing affiliate, has been enabled by a recharacterization provision within section 95(2)(a)(ii) of the Income Tax Act since the 1970s.
 
2
See I.R.C. section 61(a) (“gross income means all income from whatever source derived”).
 
3
The initial legislation, entitled the Foreign Account Tax Compliance Act (FATCA), was not enacted. See H.R. 3933, 111th Cong. (1rst Sess. 2009). The legislation was subsequently passed within a large omnibus legislative package that was mainly directed at job creation. See Hiring Incentives to Restore Employment Act, Pub. L. No. 111-147, par. 501, 124 Stat. 71 (2010). The provisions to implement FATCA are now contained in sections 1471 to 1474 of the Internal Revenue Code (Sup. 2011).
 
4
See OECD (2014a).
 
5
OECD (2014b). The OECD agreement in turn is based on Article 6 of an earlier multilateral agreement. See OECD (1998).
 
6
The OECD has explicitly stated that any information transferred under CbCR should ensure that there is no public disclosure of “confidential information (trade secrets, scientific secrets, etc.) and other commercially sensitive information.” See OECD (2014a), para 44.
 
7
I.R.C. Section 7213 (providing for criminal penalties for unauthorized disclosure of taxpayer information by federal employees).
 
8
R v Dyment, [1988] 2 SCR 417; R v O’Connor, [1995] 4 SCR 41; R v Mills, [1999] 3 SCR 668.
 
9
Baker and Pistone (2016), describing the impact of ‘European law’, including the European Convention on Human Rights); Endresen (2017) discussing how the Convention does not normally apply to substantive tax issues, which is appropriate given the national sovereignty concerns). But see Sommer v. Germany (April 27, 2017, no. 73607/13) (ECHR), holding that German government search of a lawyer’s financial information records violated Article 8 of the Convention.
 
10
United Nations General Assembly, Universal Declaration of Human Rights (Gen. Ass. Resolution 217A, Dec. 10, 1948). In December 2013, the United Nations General Assembly adopted resolution 68/167, which expressed concern at the negative impact that surveillance and interception of communications may have on human rights. While the resolution focused on mass surveillance techniques, it would also apply to the possible misuse of bulk tax information exchanged across borders.
 
11
See OECD (2015).
 
12
For a comprehensive review, see Debelva and Mosquera (2017, 377), advocating a multilateral agreement for privacy and confidentiality; Irma Mosquera et al. (2017), Baker and Pistone (2016), discussing how the rules of certain surveyed countries do not sufficiently protect the right to confidentiality and privacy; De Flora (2017, 448–450, 458), advocating for “a clear and common set of rules”); and Diepvens and Debelva (2015).
 
13
Under this agreement, the United States provided the EU with binding assurances that the access by U.S. government authorities of transferred personal information for national security purposes will be subject to clear limitations, safeguards and oversight mechanisms. In addition, EU citizens are offered a mechanism to seek redress if their rights appear to be violated and an annual joint review will monitor the implementation of the commitments. See European Commission (2016, 9–19).
 
14
The European Union abandoned this approach to join the Common Reporting Standard initiative.
 
15
Access to the registry should, however, be limited to countries/governments that meet certain, still to be defined, international standards of protection of human rights, private property, taxpayer rights, and judicial overview by independent (tax) courts to protect taxpayers against potential arbitrary taxation and unethical confiscation. In other words, access to the global registry should be limited to those governments that have signed onto the previously-discussed multilateral taxpayer bill of rights.
 
Literatur
Zurück zum Zitat Avi-Yonah, Reuven S. 2000. Globalization, Tax Competition, and the Fiscal Crisis of the Welfare State. Harvard Law Review 113 (7): 1573–1676.CrossRef Avi-Yonah, Reuven S. 2000. Globalization, Tax Competition, and the Fiscal Crisis of the Welfare State. Harvard Law Review 113 (7): 1573–1676.CrossRef
Zurück zum Zitat Baker, Philip, and Anne-Mieke Groenhagen. 2001. The Protection of Taxpayers Rights—An International Codification. London: European Policy Forum. Baker, Philip, and Anne-Mieke Groenhagen. 2001. The Protection of Taxpayers Rights—An International Codification. London: European Policy Forum.
Zurück zum Zitat Baker, Philip, and Pasquale Pistone. 2016. BEPS Action 16: The Taxpayers’ Right to an Effective Legal Remedy under European Law in Cross-border Situations. EC Tax Review 25 (5/6): 335–345. Baker, Philip, and Pasquale Pistone. 2016. BEPS Action 16: The Taxpayers’ Right to an Effective Legal Remedy under European Law in Cross-border Situations. EC Tax Review 25 (5/6): 335–345.
Zurück zum Zitat Blank, Joshua D. 2014. Reconsidering Corporate Tax Privacy. New York University Journal of Law and Business 11: 31–121. Blank, Joshua D. 2014. Reconsidering Corporate Tax Privacy. New York University Journal of Law and Business 11: 31–121.
Zurück zum Zitat Blum, Cynthia. 2004. Sharing Bank Deposit Information with Other Countries: Should Tax Compliance or Privacy Claims Prevail. Florida Tax Review 6 (6): 579–648. Blum, Cynthia. 2004. Sharing Bank Deposit Information with Other Countries: Should Tax Compliance or Privacy Claims Prevail. Florida Tax Review 6 (6): 579–648.
Zurück zum Zitat Bourquard, JoAnne, and Cassandra Kirsch. 2014. Big Data = Big Benefits. State Legislature 40 (8): 32–34. Bourquard, JoAnne, and Cassandra Kirsch. 2014. Big Data = Big Benefits. State Legislature 40 (8): 32–34.
Zurück zum Zitat Cockfield, Arthur J. 2001a. Income Taxes and Individual Liberty: A Lockean Perspective on Radical Consumption Tax Reform. South Dakota Law Review 46: 8–71. Cockfield, Arthur J. 2001a. Income Taxes and Individual Liberty: A Lockean Perspective on Radical Consumption Tax Reform. South Dakota Law Review 46: 8–71.
Zurück zum Zitat Cockfield, Arthur J. 2001b. Transforming the Internet into a Taxable Forum: A Case Study in E-Commerce Taxation. Minnesota Law Review 85: 1235–1263. Cockfield, Arthur J. 2001b. Transforming the Internet into a Taxable Forum: A Case Study in E-Commerce Taxation. Minnesota Law Review 85: 1235–1263.
Zurück zum Zitat Cockfield, Arthur J. 2002. The Law and Economics of Digital Taxation: Challenging Traditional Tax Laws and Principles. Bulletin for International Fiscal Documentation 56: 606–620. Cockfield, Arthur J. 2002. The Law and Economics of Digital Taxation: Challenging Traditional Tax Laws and Principles. Bulletin for International Fiscal Documentation 56: 606–620.
Zurück zum Zitat Cockfield, Arthur J. 2010. Protecting Taxpayer Privacy under Enhanced Cross-border Tax Information Exchange: Toward a Multilateral Taxpayer Bill of Rights. University of British Columbia Law Revie 42: 419–471. Cockfield, Arthur J. 2010. Protecting Taxpayer Privacy under Enhanced Cross-border Tax Information Exchange: Toward a Multilateral Taxpayer Bill of Rights. University of British Columbia Law Revie 42: 419–471.
Zurück zum Zitat Cockfield, Arthur J. 2016. Big Data and Tax Haven Secrecy. Florida Tax Review 18: 483–539. Cockfield, Arthur J. 2016. Big Data and Tax Haven Secrecy. Florida Tax Review 18: 483–539.
Zurück zum Zitat Cockfield, Arthur J. 2017a. Examining Canadian Offshore Taxation. Canadian Tax Journal 63: 651. Cockfield, Arthur J. 2017a. Examining Canadian Offshore Taxation. Canadian Tax Journal 63: 651.
Zurück zum Zitat Cockfield, Arthur J. 2017b. How Countries Should Share Tax Information. Vanderbilt Journal of Transnational Law 50: 1091–1132. Cockfield, Arthur J. 2017b. How Countries Should Share Tax Information. Vanderbilt Journal of Transnational Law 50: 1091–1132.
Zurück zum Zitat Cockfield, Arthur. 2018. Shaping International Tax Policy in Challenging Times. Stanford Journal of International Law 54: 223–240. Cockfield, Arthur. 2018. Shaping International Tax Policy in Challenging Times. Stanford Journal of International Law 54: 223–240.
Zurück zum Zitat Cockfield, Arthur J., and Carl MacArthur. 2015. Country-by-Country Reporting and Commercial Confidentiality. Canadian Tax Journal 63: 627–660. Cockfield, Arthur J., and Carl MacArthur. 2015. Country-by-Country Reporting and Commercial Confidentiality. Canadian Tax Journal 63: 627–660.
Zurück zum Zitat Cockfield, Arthur J., and Jonah Mayles. 2013. The Influence of Historical Tax Law Developments on Anglo-American Law and Politics. Columbia Journal of Tax Law 3: 40–69. Cockfield, Arthur J., and Jonah Mayles. 2013. The Influence of Historical Tax Law Developments on Anglo-American Law and Politics. Columbia Journal of Tax Law 3: 40–69.
Zurück zum Zitat Cockfield, Arthur, et al. 2013. Taxing Global Digital Commerce. The Netherlands: Wolters Kluwer Law & Business. Cockfield, Arthur, et al. 2013. Taxing Global Digital Commerce. The Netherlands: Wolters Kluwer Law & Business.
Zurück zum Zitat Carmona, Maria Magdalena Sepúlveda. 2014. Human Rights Council, Report of the Special Rapporteur on Extreme Poverty and Human Rights. UN Doc. A/HRC/26/28. Carmona, Maria Magdalena Sepúlveda. 2014. Human Rights Council, Report of the Special Rapporteur on Extreme Poverty and Human Rights. UN Doc. A/HRC/26/28.
Zurück zum Zitat Debelva, Filip, and Irma Mosquera. 2017. Privacy and Confidentiality in Exchange of Information Procedures: Some Uncertainties, Many Issues, but Few Solutions. Intertax 45: 362. Debelva, Filip, and Irma Mosquera. 2017. Privacy and Confidentiality in Exchange of Information Procedures: Some Uncertainties, Many Issues, but Few Solutions. Intertax 45: 362.
Zurück zum Zitat De Flora, Menita Giusy. 2017. Protection of the Taxpayer in the Information Exchange Procedure. Intertax 45: 447. De Flora, Menita Giusy. 2017. Protection of the Taxpayer in the Information Exchange Procedure. Intertax 45: 447.
Zurück zum Zitat Diepvens, Niels, and Filip Debelva. 2015. The Evolution of the Exchange of Information in Direct Tax Matters: The Taxpayer’s Rights Under Pressure. EC Tax Review 4: 210. Diepvens, Niels, and Filip Debelva. 2015. The Evolution of the Exchange of Information in Direct Tax Matters: The Taxpayer’s Rights Under Pressure. EC Tax Review 4: 210.
Zurück zum Zitat Endresen, Clement. 2017. Taxation and the European Convention for the Protection of Human Rights: Substantive Issues. Intertax 45: 508–526. Endresen, Clement. 2017. Taxation and the European Convention for the Protection of Human Rights: Substantive Issues. Intertax 45: 508–526.
Zurück zum Zitat European Commission. 2016. Guide to the EU-US Privacy Shield. European Commission. 2016. Guide to the EU-US Privacy Shield.
Zurück zum Zitat European Union. 2003. Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments. European Union. 2003. Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments.
Zurück zum Zitat Houser, Kimberly A., and Debra Sanders. 2017. The Use of Big Data Analytics by the IRS: Efficient Solutions or the End of Privacy as We Know It. Vanderbilt Journal of Entertainment and Technology Law 19 (4): 817. Houser, Kimberly A., and Debra Sanders. 2017. The Use of Big Data Analytics by the IRS: Efficient Solutions or the End of Privacy as We Know It. Vanderbilt Journal of Entertainment and Technology Law 19 (4): 817.
Zurück zum Zitat International Bar Association. 2013. Tax Abuses, Poverty and Human Rights: A Report of the International Bar Association’s Human Rights Institute Task Force on Illicit Financial Flows, Poverty and Human Rights. UK: Cambrian Printers. International Bar Association. 2013. Tax Abuses, Poverty and Human Rights: A Report of the International Bar Association’s Human Rights Institute Task Force on Illicit Financial Flows, Poverty and Human Rights. UK: Cambrian Printers.
Zurück zum Zitat Lesage, Dries, and Yusuf Kaçar. 2013. Tax Justice Through Country-by-Country Reporting: An Analysis of the Idea’s Political Journey. In Tax Justice and the Political Economy of Global Capitalism, 1945 to the Present, ed. Jeremy Leaman and Attiya Waris, 262–263. New York: Berghahn. Lesage, Dries, and Yusuf Kaçar. 2013. Tax Justice Through Country-by-Country Reporting: An Analysis of the Idea’s Political Journey. In Tax Justice and the Political Economy of Global Capitalism, 1945 to the Present, ed. Jeremy Leaman and Attiya Waris, 262–263. New York: Berghahn.
Zurück zum Zitat Marian, Omri. 2017. The State Administration of International Tax Avoidance. Harvard Business law Review 7(1). Marian, Omri. 2017. The State Administration of International Tax Avoidance. Harvard Business law Review 7(1).
Zurück zum Zitat Mazur, Orly. 2015. Taxing the Cloud. California Law Review 103: 1–65. Mazur, Orly. 2015. Taxing the Cloud. California Law Review 103: 1–65.
Zurück zum Zitat Mosquera, Irma et al. 2017. The Rule of Law and the Effective Protection of Taxpayers’ Rights in Developing Countries (WU International Taxation Research Paper Series No. 2017-10, 2017). Mosquera, Irma et al. 2017. The Rule of Law and the Effective Protection of Taxpayers’ Rights in Developing Countries (WU International Taxation Research Paper Series No. 2017-10, 2017).
Zurück zum Zitat OECD. 1998. Convention on Mutual Administrative Assistance in Tax Matters. OECD. 1998. Convention on Mutual Administrative Assistance in Tax Matters.
Zurück zum Zitat OECD. 2014b. CRS Multilateral Competent Authority Agreement. OECD. 2014b. CRS Multilateral Competent Authority Agreement.
Zurück zum Zitat Pasquale, Frank and Arthur J. Cockfield. 2018. Beyond Instrumentalism: A Substantive Perspective on Law, Technology and the Digital Person. Michigan State Law Review 821. Pasquale, Frank and Arthur J. Cockfield. 2018. Beyond Instrumentalism: A Substantive Perspective on Law, Technology and the Digital Person. Michigan State Law Review 821.
Zurück zum Zitat Sawyer, A.J. 1999. A Comparison of New Zealand Taxpayers’ Rights with Selected Civil Law and Common Law Countries—Have New Zealand Taxpayers Been “Short-Changed”? Vanderbilt Journal of Transnational Law 32: 1345. Sawyer, A.J. 1999. A Comparison of New Zealand Taxpayers’ Rights with Selected Civil Law and Common Law Countries—Have New Zealand Taxpayers Been “Short-Changed”? Vanderbilt Journal of Transnational Law 32: 1345.
Zurück zum Zitat Sullivan, Martin A. 2004. U.S. Citizens Hide Hundreds of Billions in Cayman Accounts. Tax Notes 103: 956–964. Sullivan, Martin A. 2004. U.S. Citizens Hide Hundreds of Billions in Cayman Accounts. Tax Notes 103: 956–964.
Zurück zum Zitat United Nations General Assembly. Universal Declaration of Human Rights (Gen. Ass. Resolution 217A, Dec. 10, 1948). United Nations General Assembly. Universal Declaration of Human Rights (Gen. Ass. Resolution 217A, Dec. 10, 1948).
Zurück zum Zitat Zucman, Garbriel. 2014. Taxing Across Borders: Tracking Personal Wealth and Corporate Profits. Journal of Economic Perspective 28: 121–148.CrossRef Zucman, Garbriel. 2014. Taxing Across Borders: Tracking Personal Wealth and Corporate Profits. Journal of Economic Perspective 28: 121–148.CrossRef
Metadaten
Titel
Cross-Border Big Data Flows and Taxpayer Privacy
verfasst von
Arthur J. Cockfield
Copyright-Jahr
2020
Verlag
Springer Singapore
DOI
https://doi.org/10.1007/978-981-15-0089-3_15