Reciprocity sits at the heart of global tax transparency. Without it, information exchange systems would be unbalanced, inconsistent, and difficult to implement. In this episode, we unpack how reciprocity works specifically within the IPI MCAA (Immovable Property Information Multilateral Competent Authority Agreement) and what makes this framework unique.

Unlike other exchange-of-information agreements, the IPI MCAA allows jurisdictions to provide Readily Available Information on an “as is” basis while letting receiving jurisdictions decide whether they want to participate in one or both of the reporting modules. This flexibility makes the system more inclusive—while still preserving the essential principle of reciprocity.

🔎 What You’ll Learn in This Episode:

• Why reciprocity matters in international tax cooperation

It ensures fairness: if a country expects to receive information, it must also be prepared to provide information under the same framework.

• How reciprocity functions in the IPI MCAA

Participating jurisdictions send whatever relevant property information they already have, while receiving jurisdictions can choose the scope of data they want—Module 1 (holdings & acquisitions), Module 2 (income & disposals), or both.

• Why bilateral exchanges may differ

Because jurisdictions vary in how much information they hold and which modules they opt into, the flow of real estate data can differ from one bilateral relationship to another. This flexibility reflects the practical realities of differing administrative capacities.

• Avoiding fragmentation: a simplified approach

To prevent complexity and inconsistencies across dozens of exchange relationships, a jurisdiction can join the IPI MCAA as long as it is willing to send all information items in the Annex that it has readily available.

This ensures:

– Maximum transparency

– A coherent system design

– Predictability for receiving jurisdictions

– Reduced administrative burden

The result is a streamlined, effective global framework that balances fairness, practicality, and the growing need for cross-border visibility into property ownership.