Implications of the Fundamental Right to Data Protection for Cross-Border Exchange of Tax Information Among States

Abstract

The article analyzes the implications of the fundamental right to data protection in the exchange of tax information between States, within the context of international instruments such as the OECD Model Convention, FATCA, and the Multilateral Convention. It begins with the observation that the intensification of globalization and aggressive tax planning has required the creation of mechanisms for tax cooperation, including automatic exchanges of data. It examines the Brazilian legal framework, especially the General Data Protection Law (LGPD) and Constitutional Amendment No. 115/2022, highlighting principles such as purpose, adequacy, security, and transparency in the processing of taxpayers’ data. It concludes that, although there is general compatibility between the LGPD and the international exchange of tax information, the effectiveness of this practice depends on the strict observance of constitutional and legal guarantees, the limitation to specific and determined purposes, and the adoption of procedural safeguards, under penalty of invalidating the evidence obtained and violating fundamental rights.