Exchange of Information
(1) The competent authorities of the Member States shall exchange such information as is necessary for carrying out the provisions of this Regulation or of the domestic laws of the Member States concerning taxes of every kind and description imposed on behalf of the Member States insofar as the taxation there under is not contrary to this Regulation. The exchange of information is not restricted by Articles 5 and 6 of this Regulation.
(2) In no case shall the provisions of paragraph (1) of this present article be construed so as to impose on a Member State the obligation:
- (a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Member States;
- (b) to supply information which is not obtainable under its own legislation or that of other Member States;
- (c) to supply information which would disclose any trade/business, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.
(3) If information is requested by a Member State pursuant to this Article, the other Member State shall use the powers at its disposal to obtain the requested information, even if that other State does not need such information for its own tax purposes. This obligation is subject to the limitations provided in paragraph (2) above, but in any case these limitations cannot be interpreted as allowing a Member State to decline to supply information solely because it is of no interest for such State in the national context.
(4) In no case shall the provisions of the above mentioned paragraph (2) be interpreted as allowing a Member State to decline to supply information solely because the information is held by a bank, any other financial institution, nominee or person acting in an agency or fiduciary capacity or because it relates to the property right of an individual.
(5) The exchange of information shall take place, either automatically or on request in specific cases.
The Commission shall take the necessary steps to determine the list of information that is provided automatically.
(6) The tax administrations of the Member States may also agree to establish a joint verification process between two or more Member State, where some tax payers settled in either of the concerned States reveal liaison accounts in their transactions between branches or subsidiaries.
They shall inform the Commission of the same.