Alec Sarner

All League Offensive Lineman – Center

What Is Tax Information Exchange Agreement

(c) the provision of information that would reveal any trade, commercial, professional or commercial secrets, or any information whose disclosure would be contrary to public policy (or the public). TIEAs differ from global international tax treaties (also known as tax treaties or double taxation agreements) because they do not contain provisions for the distribution of income tax duties. 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. 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. 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). 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. 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 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”.

December 20, 2020 - Posted by | Uncategorized