Newsletter-21

393 TAX LAW visions regarding information exchange included in the PDTAs proved insufficient in the face of increased capital mobility, the PDTAs are still one of the most utilized tools to combat harmful tax competition and tax evasion. The exchange of information with regard to PDTAs is restricted to the income and capital falling within the scope of that PD- TAs. Other issues with regard to the use of the information gathered, as well as confidentiality, are also regulated. In July, 2016, Turkey signed and ratified PDTAs with 82 states 5 . Tax Information Exchange Agreements Although Turkey concluded an extensive number of PDTAs, there may be instances where execution of tax information exchange agreements (“TIEAs”) are preferred, and are also promoted by the Global Forum. Also as explained, above, the PDTAs are not deemed sufficient in order to ensure information exchange and cooperation with regard to tax havens. Therefore, TIEAs that concentrate on a more specific matter of information exchange are employed to ensure maximum transparency. Such agreements may be concluded multilaterally, however, they are executed bilaterally in practice 6 . TIEAs aim to provide informa- tion to tax authorities regarding their taxpayers’ investments in a tax haven or in offshore investments made through such tax havens. As of July, 2016, Turkey has ratified TIEAs with two states, namely, Jersey and Bermuda. Although TIEAs have also been signed with Gibraltar, Guernsey and the Isle of Man, they are not yet in force. FATCAAgreement The Agreement between the Government of the United States of America (“USA”) and the Government of the Republic of Turkey to Improve International Tax Compliance through Enhanced Exchange 5 For the full list, please see: http://www.gib.gov.tr/sites/default/files/uluslararasi_ mevzuat/VERGIANLASMALIST.htm. 6 Leyla Ateş , Vergisel Bilgilerin Otomatik Değişimi Standardı ve Türkiye, İnönü Üniversitesi Hukuk Fakültesi Dergisi Özel Sayı Volume:2, 2015, p. 671.