Who can sign the MCAA?
The MCAA can be signed by:
- any Party to the Convention;
- any signatory to the Convention that has not yet ratified it; and
- any jurisdiction that has publically committed to sign the Convention.
- Only once a jurisdiction wishes to activate the actual exchanges does the Convention need to be ratified (taking into account the coming into force provisions in the Convention).
How does the MCAA work?
- The main body of the MCAA simply reflects the content and operation of the Standard (with Section 1 containing the definitions, Section 2 the information to be exchanged, Section 3 the timing and method of exchange, Section 4 how the parties to the agreement will work together to ensure compliance and Section 5 the provisions to ensure confidentiality and the safeguarding of the data).
- Sections 6 and 8 contain provisions to facilitate the smooth operation of the MCAA.
- Section 7 contains the subsequent notification process which is required in order to bring the agreement into effect between any two signatories. This process ensures the signatory always maintains control over its exchange partners and the treatment of the data exchanged.
- The notification process requires each signatory of the MCAA to notify the Secretariat to the Coordinating Body to the Convention that:
- That it has the laws in place to implement the Standard (and the effective dates).
- Whether it wishes to enter reciprocal or non-reciprocal exchange relationships.
- Specifying the technical modalities and data requirements such as: the transmission and encryption methods; required data safeguards of others; and the confidentiality and data safeguards it has in place.
- The list of jurisdictions with which it intends to exchange information.
- Where two signatories both specify the other in their list of intended exchange partners then MCAA will then come into effect between those two signatories.
- Rules of procedure will be developed to determine the sequencing of these notifications as well as any subsequent changes to the notifications.
What is the process to sign?
- A Declaration is signed by the competent authority of a jurisdiction (or on its behalf), with the MCAA attached. At this point the intended exchange dates are set out (these are subject to the necessary domestic processes so are intended and not binding).
- The notifications are then made thereafter.
- For any questions, please contact: firstname.lastname@example.org (OECD Centre for Tax Policy and Administration) and email@example.com (OECD Directorate for Legal Affairs).