Organization : Department For International Tax Cooperation (DITC)
Facility : Exchange of Information on Request (EOIR)
Country : Cayman Islands
Website : https://www.ditc.ky/eoir/
What is DITC Exchange of Information on Request (EOIR)?
The Exchange of Information on Request (EOIR) takes place when the tax authority of a requesting jurisdiction asks for particular information from the competent authority of a partner jurisdiction. The DITC’s procedure used in EOIR is modelled on the OECD Manual on the Implementation of Exchange of Information Provisions for Tax Purposes.
There are three basic principles of transparency and effective exchange of information:
** Availability of information
** Appropriate access to the information
** The existence of exchange of information mechanisms
FAQ On DITC Exchange of Information on Request (EOIR)
Frequently Asked Questions FAQ On DITC Exchange of Information on Request (EOIR)
What is EOIR?
** Definition: EOIR is a process where the tax authority of one jurisdiction asks a partner jurisdiction’s competent authority for specific information needed for a tax investigation or enforcement.
** Governing Body: In the Cayman Islands, the Tax Information Authority (TIA) acts as the competent authority under the Tax Information Authority Act (2021 Revision). The TIA is not a direct tax agency (as there are no direct taxes in the Cayman Islands), but it handles international tax cooperation.
Three Core Principles of EOIR
1. Availability of Information: Underlying records—including banking, ownership, identity, and accounting data—must be kept and maintained (typically for at least 5 years).
2. Appropriate Access: The competent authority must have the legal power and investigative tools to obtain the requested information.
3. Effective Exchange Mechanisms: Information is exchanged via established international agreements (such as Tax Information Exchange Agreements or Double Taxation Conventions) while ensuring strict confidentiality and data safeguards.
Key Rules & Standards:
** Foreseeable Relevance: Requests must involve “foreseeably relevant” information for administering or enforcing domestic tax laws. General or speculative inquiries (“fishing expeditions”) are strictly not authorized.
** Confidentiality: All information exchanged is subject to strict international tax secrecy and security rules.
How does the TIA handle an incoming EOIR request?
When a foreign tax authority submits an EOIR request, the Tax Information Authority (TIA) reviews it to ensure it legally complies with international treaties. If valid, the TIA uses its regulatory powers to compel local corporate services providers, banks, or entities to produce the requested information.
Can the TIA deny an EOIR request?
Yes. The TIA will reject a request if it constitutes a “fishing expedition”—meaning the requesting country is searching blindly for tax information without specific, pre-existing grounds for a tax investigation. Requests must clearly demonstrate foreseeable relevance to the taxpayer under audit.
How long do Cayman entities have to retain records for EOIR purposes?
To satisfy global OECD Global Forum transparency standards, the TIA enforces a minimum 5-year data retention rule. Underlying information—such as transaction histories, accounting ledgers, and ownership structures—must be readily available and accessible.
DITC EOIR Contact
For enquiries relating to EOIR, please contact TIA@gov.ky