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What Is Information Exchange Agreement

A TIEA is a reciprocal agreement between countries, which is a variant of a tax treaty, which has been specifically concluded by governments to exchange information useful to the management and enforcement of national tax legislation of the contracting parties. This information generally relates to the setting, taxation and collection of taxes; collection and enforcement of tax claims; Investigations, including prosecutions. The aim of this agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Information Exchange. The agreement and the relevant provisions are described in 12 articles. Article 1 deals with the purpose and scope of the agreement. Section 2 deals with jurisdictional issues. Article 3 stipulates that taxes subject to the agreement are levied on all types and descriptions imposed by governments, including their sub-divisions, local authorities and political sub-divisions. Article 4 defines the keywords. Article 5 concerns the exchange of information on request. Article 6 provides for the hearing of persons and the examination of the recordings with the prior written consent of the parties concerned. Section 7 deals with the procedural aspects of rejecting these requests for information. Article 8 is about implementation.

Article 9 deals with the procedure of mutual agreement. Article 10 concerns the application of the agreement. Section 11 deals with confidentiality and, more recently, section 12, termination of contract. (b) to provide information that cannot be obtained under the law or in the normal course of administration of the State party concerned or the other State party concerned; All agreements have been signed and ratified, unless otherwise stated. TIEA`s objective is to ensure an effective exchange of information and to improve the transparency of taxpayers` financial agreements/transactions for tax purposes. TIEAs also provide an important momentum for achieving the OECD`s harmful tax practices initiative objectives. The agreement was born out of the OECD`s work on combating harmful tax practices. The lack of effective exchange of information is one of the main criteria for determining harmful tax practices. The agreement is the standard for the effective exchange of information within the meaning of the OECD`s initiative on harmful tax practices. Tax Information Exchange Agreements (TIEA) provide for the exchange of information on request in the context of a specific criminal or civil tax investigation or civil tax matter under investigation. [1] A TIEA model has been developed by the OECD Global Forum Working Group on Effective Information Exchange.

A tieA request for information model has been developed to assist the relevant authorities of TIEA partners in requesting information. It is available in English and French as well as in Spanish, German, Italian, Japanese, Korean and Turkish. Jersey has signed a number of TIEAs based on this OECD model that allow us to send and receive tax information with more than 30 countries.