Tax Information Exchange Agreement Is

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. The Organisation for Economic Co-operation and Development (OECD) has developed a process that allows some jurisdictions in non-OECD financial centres to commit to eliminating harmful international tax evasion and evasion practices. These legal systems can do this by signing tax information exchange agreements (TIEA) with OECD member countries and committed legal systems, collectively referred to as “participating partners”. Jurisdictions can also use the text of the articles in the model protocol if they wish to include the automatic and spontaneous exchange of information in a new TIEA. Each TIEA defines the obligation between Australia and the non-OECD partner to help each other by exchanging correct tax information relevant to the management and enforcement of their national tax laws (civil and criminal). The information can only be provided on request, i.e. a court is not required to provide information that it has not requested from the other jurisdiction. TIEAs also differ from the exchange of information on traditional international tax treaties in two respects: offshore tax evasion undermines the fairness and integrity of Australia`s tax system. Moreover, in the age of globalization, the willingness of other governments to exchange information is an important element in the application of national tax legislation. The exchange of information on request was completed by an automatic procedure on 29 October 2014. [2] The automatic process must be based on a common reporting standard. 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. Under TIEA, contractors must have a legal and administrative framework to support their obligation to exchange information. For example, the ability to exchange information cannot be hampered by restrictions such as the Bank Secrecy Act or the restriction on the acquisition and exchange of information necessary for their national tax administration. This agreement, published in April 2002, is not a binding instrument, but includes two models of bilateral agreements. Many bilateral agreements are based on this agreement (see below). 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. In June 2015, the OECD`s Tax Affairs Committee (CFA) approved a standard protocol on the agreement. The standard protocol can be used by jurisdictions if they wish to extend the scope of their existing TIEAs to the automatic and/or spontaneous exchange of information. 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. In this regard, legal systems may be based on a bilateral agreement between the competent authority for the implementation of the automatic exchange of information in accordance with the common standard of notification or automatic exchange of reports by country on a TIEA, particularly in cases where it is not (yet) possible to automatically exchange information through the relevant authority within the framework of a relevant multilateral agreement.