handbook-tb

Transparency and disclosureWith respect to exchange of information, the Conventionincludes a comprehensive consideration of: (a) prerequisites toexchange; (b) what can be exchanged; and (c) the mechanism forexchange. As drafted, the Convention envisages exchange of informationupon request, spontaneously and automatically (according toprocedures and terms mutually agreed to by two or more parties). 67The Commentary on the Convention emphasizes the value of standardizationin automatic exchange, noting savings in time and workload,but observes that these advantages accrue primarily when largenumbers of countries participate in the standardization process. TheMultilateral CAA that was signed by 51 countries in October 2014,committing to automatic exchange of information, is grounded in thelegal framework of the Convention, with the advantages and concernsfor developing countries noted in sections 4.3.4.2 and 4.3.4.3 above.5.5 Regional agreementsIn addition to bilateral tax treaties, TIEAs and the MultilateralConvention on Mutual Administrative Assistance in Tax Matters,regional agreements exist which could serve as the legal basis andframework for exchange of information among the signatory States.Examples of such regional agreements include: (a) the 2008 West AfricanEconomic Monetary Union (WAEMU) Income and Inheritance TaxConvention (Article 33); (b) the South Asian Association for RegionalCooperation (SAARC) Limited Multilateral Agreement on Avoidanceof Double Taxation and Mutual Administrative Assistance (Article 5);and (c) the Agreement Among the Member States of the CaribbeanCommunity (CARICOM) for the Avoidance of Double Taxation and thePrevention of Fiscal Evasion with Respect to Taxes on Income, Profitsor Gains and Capital Gains and for the Encouragement of RegionalTrade and Investment (Article 24). However, a major limitation ofregional agreements is their membership. Both the requesting State andthe country from which it is seeking information must be members ofthe applicable regional agreement. To the extent that the taxpayers ofa country conduct business or hold their assets and accounts in otherjurisdictions, the regional agreements offer little assistance. Moreover,their relatively abbreviated exchange of information provisions do not67Ibid., Articles 6 and 7.561