Exchange of information

Exchange of Information (EOI) refers to the systematic sharing of tax-related data and intelligence between the tax authorities of different jurisdictions. The objective is to combat tax evasion, strengthen compliance, and promote transparency in international financial and cross-border transactions. EOI can occur through bilateral or multilateral agreements, such as Double Taxation Avoidance Agreements (DTAAs) or international conventions on tax cooperation.

Example: Under an Exchange of Information agreement, two countries may share details of individuals or corporations holding overseas bank accounts to ensure accurate tax reporting and prevent tax evasion.