Introduction to the Law of Double Taxation Conventions

S. 12716. Assistance in the collection of taxes

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In 2002, the OECD Committee on Fiscal Affairs added Art. 27 to the OECD Model, which provides for assistance in the collection of taxes. The contracting states assist each other in the execution of revenue claims. It remains to be seen if – and how efficiently – Art. 27 OECD Model will be enforced in practice.

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The administrative assistance covers revenue claims. The term “revenue claim” means an amount owed with respect to taxes of every kind and description imposed on behalf of the contracting states or of their political subdivisions or local authorities, including interest, administrative fines, penalties and costs that are linked to the execution or safeguarding of this amount. This is subject to the condition that the taxation is not contrary to the DTC or another agreement concluded between the contracting states. Revenue claims that are enforceable under the laws of a contracting state and are owed by a person who, at that time, cannot, under the laws of that state, prevent its collection, shall, at the request of the competent authority of this state, be accepted for purposes of collection by the competent authority of the other contr...