The Treaty Network Theory: Accessing Foreign Tax Information Networks Under the OECD Model Convention

Globalization and the current economic climate have forced states to work toward improving access to foreign and domestic tax information with a view to better protecting their own tax base. At the forefront of these efforts are the exchange-of-information provisions found in virtually all bilateral tax treaties, many of which are based on the model double taxation convention of the Organisation for Economic Co-operation and Development (OECD). Curiously, existing departures from the OECD model suggest that certain states may have the obligation to assist one treaty partner by requesting and providing tax-related information from another treaty partner. This article analyzes the viability of this "treaty network theory" in the context of the OECD model and Canada's existing tax treaties. The author concludes that the text of many of Canada's treaties appears to allow for such a result, suggesting that tax authorities and treaty negotiators should carefully consider, in their future work, whether this was intended, or whether they should protect against this possibility.