Hastings International and Comparative Law Review


Emily Wang


Offshore tax evasion and barriers to tax information exchange between countries have been an increasing problem for tax authorities around the globe. Since the launch of the Tax Information Exchange Agreement (TIEA) in 2002 by the Organization for Economic Co-operation and Development (OECD), the United States and China have signed TIEAs with various other countries, but not with each other. This Note examines the possibility of China and the U.S. entering into a TIEA for the purpose of a better tax information exchange between the two countries.

This Note first explains the nature of offshore accounts tax evasion and the significant role of domestic bank secrecy laws play in facilitating tax evasion in the U.S. and China. Next, it introduces the model Tax Information Exchange Agreement proposed by the OECD and OECD's past and current efforts in increasing global tax information sharing.

Finally, the Note concludes with a gloomy outlook on the effectiveness of TIEA in tax information exchange and the likelihood of the U.S. and China entering into a TIEA.