In recent years, we have seen significant progress in the international exchange of tax information, which has thus become a powerful tool for tax authorities to access cross-border information and thus ensure the effective application of the tax system.

Following the milestone of establishing the standard for automatic exchange of financial accounts in a large number of jurisdictions (currently 108), the international agenda has continued to push for new automatic exchanges of information that seek greater transparency in cross-border transactions.

In this sense, it is worth mentioning the OECD/G20 Project on base erosion and profit shifting (known as "BEPS"), which established, in its Action 5, the exchange of "tax rulings" al amparo del Convenio de Asistencia Administrativa Mutua en Materia Fiscal y de los Convenios bilaterales para evitar la doble imposición. En el ámbito de la Unión Europea, este nuevo intercambio quedó establecido a través de la Directiva 2015/2376 de 8 de diciembre de 2015 (conocida como DAC3). De esta forma, la Agencia Tributaria viene recibiendo información sobre "tax rulings" and prior transfer pricing agreements issued by foreign tax authorities with effect in Spain.

Furthermore, in order to improve and increase the level of international tax transparency and to ensure that tax authorities have information regarding the global distribution of income, taxes paid and other indicators of the location of economic activity between the tax jurisdictions in which large multinational groups operate, BEPS Action 13 established the obligation for said groups to present an annual "Country by Country" report (known as a "CbC Report"). These large multinational groups are those in which the net amount of consolidated turnover exceeds 750 million euros.

At the OECD level, this exchange takes place under the Multilateral Agreement between Competent Authorities for the Exchange of Country-by-Country Reports , which was initially signed by a total of 31 signatories on 27 January 2016, among which was Spain. At the level of the European Union, the exchange of the "Country by Country" report was established in a new reform of the EU Cooperation Directive, Council Directive (EU) 2016/881, of 25 May 2016 (known as DAC4). With the United States, the exchange of CbC reports is carried out under a bilateral agreement signed in 2017.

Since the first CbC exchange in June 2018, the Tax Agency has been exchanging these "Country by Country" reports annually with an increasing number of countries and jurisdictions. Currently, the signatories of this Multilateral Agreement total 92 jurisdictions. A new initiative promoted by the Forum on Harmful Tax Practices of the OECD, within the framework of the aforementioned Action 5 of the BEPS project, has meant that Spain is receiving from the year 2021 from certain territories information relating to compliance with the substantial activity requirement.

Along with all of the above, at the level of the European Union, in 2020 information began to be received on certain cross-border tax planning mechanisms that involve several Member States, in accordance with the provisions of Directive (EU ) 2018/822 of the Council of 25 May 2018 (DAC6). However, it was not until 2021 that this exchange became widespread among all Member States.

This new exchange has allowed the Tax Agency to have information on tax planning mechanisms that affect residents in Spain, declared in any Member State of the European Union by the intermediary that facilitates said mechanisms or, in certain cases, by the interested taxpayer. This greater transparency will facilitate both the prevention and correction of evasive or elusive behavior based on this type of mechanism.

Additionally, it should be mentioned that, on March 4, 2021, the International Agreement on taxation and protection of financial interests between the Kingdom of Spain and the United Kingdom of Great Britain and Northern Ireland in relation to Gibraltar of March 4, 2019, came into force, in which, once BREXIT has occurred, an equivalent level of exchange of information is established, also incorporating enhanced cooperation in relation to said territory.

Finally, it should be mentioned the seventh extension of the Administrative Cooperation Directive operated by Council Directive of March 2021 (DAC7) which has established the obligation of automatic obtaining and exchange of information by digital platform operators. This Directive is currently pending transposition. The first exchange of information will take place in 2024 and will allow tax authorities to have information on the income obtained through these platforms by their residents, as well as in relation to the properties located in their territory. There is no doubt that this will represent a major step forward in the transparency of transactions carried out through these new players in the globalised economy. In parallel, within the OECD, the model rules and comments for this new exchange have already been approved and very intense work is being done so that the future Multilateral Agreement of Competent Authorities can soon be signed.

As for future projects that are quite advanced, it is worth mentioning the work that is being carried out in relation to the future exchange related to cryptoassets which, within the OECD, will mean a new multilateral Agreement of Competent Authorities. These works are taking place in parallel and coordinated with the European Union which, in this way, will give birth to the eighth reform of the EU Cooperation Directive. At the same time, the opportunity is being taken to jointly promote the first modification of the CRS standard, in order to include new financial assets, as well as the experience acquired in the seven years since its adoption.

All these new automatic international exchanges of information, together with the existing ones, with international exchanges on request and spontaneous exchanges complemented by projects already underway, create a very different scenario to that existing years ago, making it possible for information with tax relevance located abroad to be shared between the various tax authorities.

We will conclude by pointing out that it is the consensus and the multilateral approach that has allowed the significant development experienced in recent years by the exchange of information which, although it is a traditional instrument, has demonstrated a great capacity to adapt to the new challenges arising from globalization, becoming a fundamental element present in the new initiatives of the international tax panorama.