Explain the term "Exchange of information" as per Article 26 of Model Tax Conventions under OECD Model and UN Model and explain importance of…

In order to complete tax cases, a country may require certain information which may be available with the treaty partner. Article 26 provides for the information which may be exchanged and the manner in which such a request has to be made. The OECD and UN Model Conventions are similar with respect to this Article. Importance of Article 26: facilitates effective exchange of information between Contracting States.curtails cross-border tax evasion and avoidance,curtails the capital flight that is often accomplished through tax evasion & avoidance. This is particularly relevant in the perspective of developing countries.