Pursuant to the Tax Information Exchange Act, the insurer collects tax information (e.g. information about the paid insurance premiums, withdrawals from the contract, or the amount of the contract reserve) regarding the persons connected to the insurance contract, and submits such information to the tax authority who might need such information in order to determine the amount of potential tax liability that might arise in a foreign country (including the USA and the OECD countries). In the cases provided in international agreements or the law, the tax authority has the right to submit such information to a foreign state authority (more information about it on the webpage of the Ministry of Finance http://www.fin.ee/fatca)
Pursuant to the Tax Information Exchange Act, the insurer collects and submits to the tax authority tax information about insurance contracts that have a US tax resident as the policyholder or the beneficiary; therefore, such exchange of information pertains to clients whose activities might result in tax liability in the USA
The exchange of information includes information that, pursuant to international agreements or the law, is necessary to determine the amount of tax liability of the client in a foreign country, such as personal information, the foreign tax number of the client, the amount of reserve of the insurance contract or the amount of withdrawals. In the cases provided in international agreements or the law, the tax authority has the right to submit the information collected and submitted by the insurer to a competent foreign state authority.