Tax Information Exchange Agreements - Explained
What are Tax Information Exchange Agreements?
Written by Jason Gordon
Updated at September 18th, 2021
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Table of Contents
What is a Tax Information Exchange Agreement?How Does a Tax Information Exchange Agreement Work?Academic Research on Tax Information Exchange AgreementsWhat is a Tax Information Exchange Agreement?
Tax information exchange agreements (TIEA) was developed by the Organization for Economic Co-operation and Development (OECD). TIEA is a standard of exchange that provides information on civi tax matters or criminal tax investigation. TIEA renders services that aid international cooperation in tax related matters through the exchange of information. When there are requests for information on specific criminal matters such as tax evasion and tax related offenses, TIEA provides the exchange of such information. The OECD Global Forum Working Group on Effective Exchange of Information developed TIEA. Initially, TIEA is meant to provide exchange of information based on request but afterwards, it was expanded to an automatic process of Common Reporting Standard.
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How Does a Tax Information Exchange Agreement Work?
Just like every other agreement, TIEA also contain certain provisions on tax information exchange. The basic provisions of TIEA are;
- Provision of information requested on a non-resident of a contracting party.
- Exchange of information that is relevant to the enforcement of domestic tax laws on Contracting Parties.
- Provision of information relating to a specific criminal or civil tax investigation.
- The information provided under TIEA is protected by confidentiality obligations. Disclosure of such information is permissible only in court or during tax investigation.
- No domestic interest for tax purposes is needed for TIEA to provide information.
- The information provided is comprehensive, it includes banking details, ownership details of companies, funds or trusts.
Academic Research on Tax Information Exchange Agreements
- The OECD'S tax information exchange agreements an example of (in) effective global governance?, Sawyer, A. (2011). Journal of Applied Law and Policy, (2011), 41.
- Peer Review of Tax Information Exchange Agreements: Is It More than Just about the Numbers, Sawyer, A. (2011). Austl. Tax F., 26, 397.
- Tax Information Exchange Agreements and the War Against Tax Evasion, Kerzner, D. (2014). (Doctoral dissertation).
- Tax Information Exchange Agreements (TIEAs), Pankiv, M. (2013).
- Tax havens, tax evasion and tax information exchange agreements in the OECD, Kemme, D. M., Parikh, B., & Steigner, T. (2017). European Financial Management, 23(3), 519-542.
- Selected Update on Tax Information Exchange Agreements in Latina America, Litvak, E. G. (2010). Law & Bus. Rev. Am., 16, 335.
- US Tax Information Exchange Agreements: A Comparative Analysis, Sharp, W. M., Harrison, W. T., Lunsford, R. A., & Harty, S. A. (2002).
- The Tax Information Exchange Agreements and their Implementation in Peru, Valdez Ladrn de Guevara, P.
- Who Profits From Tax Information Exchange Agreements?, Diller, M., Lorenz, J., & Schneider, G. T. (2017).
- Do tax information exchange agreements curb transfer pricing-induced tax avoidance?, Diller, M., & Lorenz, J. (2017). (No. B-29-17). Passauer Diskussionspapiere: Betriebswirtschaftliche Reihe.