handbook-tb

Diane Ring5.2.3 Information sought not needed by requested State for ownpurposesA further 2011 change to Article 26 of the United Nations ModelConvention sought to eliminate an additional argument that a Statemight use to decline to provide requested information: that the Stateasked to produce the information has itself no need or use for the informationin administering its tax law. Article 26 (4) now provides that:“If information is requested by a Contracting State in accordance withthis Article, the other Contracting State shall use its information-gatheringmeasures to obtain the requested information, even though thatother State may not need such information for its own tax purposes.”Anticipating that some States might try to argue that they are not legallycapable of providing information that they do not need for a tax purpose(despite the language in Article 26 (4)), the United Nations Commentaryon Article 26 offers alternative language. This alternative phrasingrequires that each Contracting State must undertake to ensure that itscompetent authority will have the requisite power under domestic lawto secure the information needed for tax treaty information exchangepurposes. In some cases, domestic legislation, rulemaking or administrativechanges may be necessary to ensure that power. 655.2.4 FormatArticle 26 exchange of information provisions do not require thatinformation be provided in a certain format. But more uniformity inthe content and format of information provided by taxpayers to thegovernment might, increasingly, lead to the government of a requestingState receiving information in a desired format. For example, therecommendation under BEPS Action 13 would notably enhance transparencyand disclosure by requiring that taxpayers collect, generateand provide information in a specified format to the tax authorities.This rule, implemented in each jurisdiction through domestic legislation(master file, CbC template and local file reporting requirements),would shift the burden to the taxpayers, who have a distinct abilityto access their own information. To the extent that reporting for the65See paragraph 26.3 of the Commentary on Article 26 of the UnitedNations Model Convention.558