In a context where taxpayers operate on a cross-border basis, the exchange of information is a form of mutual administrative assistance in tax matters between jurisdictions, which is carried out by virtue of an international instrument and whose purpose is to detect and prevent tax evasion and avoidance, as well as to promote compliance with tax obligations.
It should be noted that the exchange of information is promoted and monitored by international organizations such as the Global Forum. For further details on the Global Forum, please visit the following link: https://web-archive.oecd.org/tax/transparency/
The international instruments that provide for the exchange of information are the following:
Convention on Mutual Administrative Assistance in Tax Matters.
Double Taxation Avoidance Treaties signed with Chile, Canada, Brazil, Mexico, South Korea, Switzerland, Portugal, and Japan.
Decision 578 of the Andean Community.
Information Exchange Agreements signed with the United States of America and Ecuador.
These international instruments define, among others, the taxes covered, persons covered, periods covered, the types of information exchange covered, as well as the confidentiality provisions to be taken into account when exchanging information.
Likewise, there are 3 types of information exchange:
Exchange of information on request
Automatic Exchange of Information
Spontaneous Exchange of Information