The role of information exchange agreements in international trade and the evaluation of tax havens

In the ever-changing and developing landscape of global trade, commercial activities have transcended national borders; and e-commerce, following globalization and technological development, has bridged vast distances. Capital has become distanced, and this situation, which complicates the tracking of capital and taxpayers, has increased informality. New formations such as "tax havens" have emerged to increase untaxed profits, and countries have endeavored to take new measures against them. As the importance of intelligence in globalized trade grows, countries operating under the principle that "unity is strength" have begun to act in concert to escape this harmful tax competition and minimize tax losses. Over time, they have resorted to mutual tax conventions and information exchange agreements. In this study: • The study focuses on how trade has acquired a new dimension, crossing national borders due to technological developments and globalization. • The cause-and-effect relationship of "capital flight" to tax havens—which promise "lower tax," "zero tax," or "informality"—is investigated, standing in direct opposition to countries' efforts to increase tax revenues. • Capital's desire for concealment is examined alongside the corresponding emphasis by countries on intelligence efforts and the signing of information exchange agreements to prevent harmful tax competition and informality. • The types and methods of the convention on mutual administrative assistance in tax matters and information exchange agreements are thoroughly discussed. • The study investigates the effects on international trade of the shifting of capital to tax havens that offer tax advantages, driven by technological developments, the elimination of borders through the internet, and the growth of e-commerce; it also examines the structures, characteristics, and changes in the number of tax haven countries, as well as measures developed to prevent the erosion of national tax bases. • The study addresses the work carried out against tax havens by international organizations, primarily the OECD, as well as the G7, G20, EU, FATF, and Turkey, focusing on the effectiveness of the measures taken in this area. • The study aims to identify methods for coping with tax-related problems in international trade, harmful tax competition, and tax havens, while highlighting the importance of information exchange agreements and determining current and necessary future actions. • The OECD's international efforts to increase tax transparency and information exchange—aimed at ending bank secrecy and combating tax evasion and avoidance—are evaluated within the context of today's global world, where ensuring correct taxation and cooperation between tax administrations is of paramount importance. • Finally, the measures taken against tax problems in international trade and the results of international efforts are presented, along with recommendations for necessary precautions.