How to combat tax evasion in tax havens? A legal and economic analysis of OECD and EU standards on exchange of information in tax matters with a special focus on capital income

This chapter is organized as follows. After a review of the background and the general principles of the OECD and EU measures to combat tax evasion concerning capital income in sections 3.2 and 3.3, respectively, in section 3.4 the economics of tax information exchange and contrasts of the OECD measures and the Savings Tax Directive with the former are examined. In section 3.5, the effectiveness of the OECD and EU measures in reducing cross-border tax evasion and tax avoidance is discussed. The final section concludes the chapter and discusses broader policy implications.