4.3 Analysis Of Legal Options: Analysis
4.3 Analysis of Legal Options
The options presented in this section are potential avenues for implementing EOI (OECD, 2006). Even though, the OECD proposed these methods for EOI between tax jurisdictions, they offer guidance for EOI between a tax agency and local partner MDALs. Each of these options has benefits and downsides.
Method Description Applicability
Direct Access A fast data access mechanism between EOI partner agencies. There is the risk of information exposure to malicious parties hence the need for measures to safeguard data secrecy and confidentiality (OECD, 2012). It requires EOI partners to use the same architecture with a higher level of trust, unlike the other available options. This ensures seamless EOI and transit data …show more content…
Agencies send the data as a report and is from the start identifiable by its custodians. This provides consistent information which forms the basis for detecting unknown noncompliance trends. It is, however, inflexible for ad hoc jobs because auditors aren’t at liberty to demands for particular information. This can serve well between KCCA and URA because both MDALs clearly understand each other’s business, the data requirements and formats. Otherwise, it is complicated where MDALs must choose the specific data for ad hoc investigations.
Spontaneous Exchange Requires MDALs to provide certain data impulsively, but with the discretion to do so or not. However, for user discretion, MDALs must agree on the rules of exchange (OECD, 2012). This is ideal in EOI between MDALs in different jurisdictions (OECD, 2012). MDALs must know the specific information important to their partners and both must have a close working relationship.
Table 3: Methods of information …show more content…
Unlike other approaches, the Point-to-Point approach doesn’t use complicated development resources in terms of skills and packages. This reduces the time frame in which this approach can be developed and deployed because it uses existing tools to link applications. This approach is ideal for loosely coupled yet integrated systems. The approach uses business rules that aid near real-time integrations. This reduces the latency and enhances the reliable delivery of messages for immediate decision-making. Web services are cost effective and use proprietary integration platforms to do away with integration problems just like the EAI approach. It deploys a standards-based integration model with a high degree of reuse and extensive user support. It also has minimal upfront cost requirements. This approach is excellent for exchanging huge data volumes in a short time. It supports the blending of source meta-data models with that of the recipient agency and supports consistent data transformations (MIT, 2004). It uses simple user interfaces with minimal
The options presented in this section are potential avenues for implementing EOI (OECD, 2006). Even though, the OECD proposed these methods for EOI between tax jurisdictions, they offer guidance for EOI between a tax agency and local partner MDALs. Each of these options has benefits and downsides.
Method Description Applicability
Direct Access A fast data access mechanism between EOI partner agencies. There is the risk of information exposure to malicious parties hence the need for measures to safeguard data secrecy and confidentiality (OECD, 2012). It requires EOI partners to use the same architecture with a higher level of trust, unlike the other available options. This ensures seamless EOI and transit data …show more content…
Agencies send the data as a report and is from the start identifiable by its custodians. This provides consistent information which forms the basis for detecting unknown noncompliance trends. It is, however, inflexible for ad hoc jobs because auditors aren’t at liberty to demands for particular information. This can serve well between KCCA and URA because both MDALs clearly understand each other’s business, the data requirements and formats. Otherwise, it is complicated where MDALs must choose the specific data for ad hoc investigations.
Spontaneous Exchange Requires MDALs to provide certain data impulsively, but with the discretion to do so or not. However, for user discretion, MDALs must agree on the rules of exchange (OECD, 2012). This is ideal in EOI between MDALs in different jurisdictions (OECD, 2012). MDALs must know the specific information important to their partners and both must have a close working relationship.
Table 3: Methods of information …show more content…
Unlike other approaches, the Point-to-Point approach doesn’t use complicated development resources in terms of skills and packages. This reduces the time frame in which this approach can be developed and deployed because it uses existing tools to link applications. This approach is ideal for loosely coupled yet integrated systems. The approach uses business rules that aid near real-time integrations. This reduces the latency and enhances the reliable delivery of messages for immediate decision-making. Web services are cost effective and use proprietary integration platforms to do away with integration problems just like the EAI approach. It deploys a standards-based integration model with a high degree of reuse and extensive user support. It also has minimal upfront cost requirements. This approach is excellent for exchanging huge data volumes in a short time. It supports the blending of source meta-data models with that of the recipient agency and supports consistent data transformations (MIT, 2004). It uses simple user interfaces with minimal