I would like to share my research about data exchange between countries.
I have discovered that many times the fear from people interested in Offshore were not justified.
When no agreements are in place between countries, no data exchange is performed.
TIEA or DTA:
When there is an agreement, data exchange occurs only under precise circumstances.
For instance with TIEA agreements (tax information exchange agreement) or DTA (double taxation agreement), a country can only ask the data of one person in particular including its address and the date period for gathering corporate tax information. A country can't ask for the information from all the people from one nationality. Anyways nationality is not a requested field because they look for fiscal residents. The fields to find someone are First name, surname, address, country.
Plus, the country that issues the request has to pay the other country for this request.
Automated exchange:
With the automated exchange under OCDE agreements, banks should only issue bank information to the country of a non resident if he/she is the beneficial owner of corporate account exceeding 250,000 USD
Justice cooperation:
Outside of that, there is a International Justice cooperation, it is changing from country to country. Many countries like Panama don't cooperate when there is a problem with one of their companies. International justice requests go through Interpol and then it is received by a Local judge in the jurisdiction of the country where the company resides. Then, the Judge decides to open a local case for it or dismiss the request. It seems to be the most dangerous but it is the one that is the less likely to happen and to succeed because the criminal law has to be the same in the country that issue the complaint and the country that receives the complaint. For instance, let's imagine someone in France considers that a US company is doing hate speech online, they issue an international notice at Interpol, then when a US judge receives the request it dismisses it because of the 1st amendement free speech. That's an example but it works in different cases.
I am sorry i don't know anything about FATCA.
I have discovered that many times the fear from people interested in Offshore were not justified.
When no agreements are in place between countries, no data exchange is performed.
TIEA or DTA:
When there is an agreement, data exchange occurs only under precise circumstances.
For instance with TIEA agreements (tax information exchange agreement) or DTA (double taxation agreement), a country can only ask the data of one person in particular including its address and the date period for gathering corporate tax information. A country can't ask for the information from all the people from one nationality. Anyways nationality is not a requested field because they look for fiscal residents. The fields to find someone are First name, surname, address, country.
Plus, the country that issues the request has to pay the other country for this request.
Automated exchange:
With the automated exchange under OCDE agreements, banks should only issue bank information to the country of a non resident if he/she is the beneficial owner of corporate account exceeding 250,000 USD
Justice cooperation:
Outside of that, there is a International Justice cooperation, it is changing from country to country. Many countries like Panama don't cooperate when there is a problem with one of their companies. International justice requests go through Interpol and then it is received by a Local judge in the jurisdiction of the country where the company resides. Then, the Judge decides to open a local case for it or dismiss the request. It seems to be the most dangerous but it is the one that is the less likely to happen and to succeed because the criminal law has to be the same in the country that issue the complaint and the country that receives the complaint. For instance, let's imagine someone in France considers that a US company is doing hate speech online, they issue an international notice at Interpol, then when a US judge receives the request it dismisses it because of the 1st amendement free speech. That's an example but it works in different cases.
I am sorry i don't know anything about FATCA.
