Exchange Of Information Vs Data Protection: A Brave New World Of Transparency

Automatic exchange of information ("AEoI") was developed a decade ago as the new cure-all in the fight against tax fraud for developed countries' tax administrations. In our new context of global transparency, the set-up of these instruments seems to be an unstoppable trend.

However, while the purpose of AEoI is legitimate and reversing the situation is not an option, the AEoI raises, in its current form, genuine difficulties as regards fundamental principles in European law.

Let's quickly take a look at the origins of AEoI and explain why it has developed so rapidly. Afterwards, we'll discuss why the AEoI standards are in conflict with fundamental taxpayers' rights. Finally, we'll give you our thoughts about how to increase compatibility between the AEoI and the right to privacy.