TIEA – Tax Information Exchange Agreements

Tax Information Exchange Agreements (TIEAs) are bilateral treaties governing the exchange of information in tax matters on request. They were primarily developed to create information exchange mechanisms with jurisdictions — particularly classic offshore financial centres — that have not concluded or do not wish to conclude conventional double tax treaties (DTTs) because they have no or very low taxes.

The model agreement for TIEAs was published by the OECD in 2002 and has since formed the basis for hundreds of bilateral agreements worldwide. TIEAs were an important instrument in the fight against tax havens and continue to form a significant part of the global network for tax cooperation.

TIEAs emerged in response to the inadequate transparency of many offshore financial centres that traditionally refused to conclude double tax treaties with comprehensive information exchange standards:

• 1998: OECD publishes the report 'Harmful Tax Competition: An Emerging Global Issue', systematically identifying harmful tax practices for the first time and laying the groundwork for TIEAs
• 2000: OECD report on harmful tax practices; increased pressure on tax havens
• 2002: Publication of the OECD Model TIEA; first bilateral TIEAs are concluded
• 2009: G20 pressure leads to massive expansion of the TIEA network; many offshore centres conclude numerous TIEAs in a short period
• 2010–2014: Peak of TIEA conclusions; Global Forum reviews TIEA networks as part of peer reviews. In 2012, the OECD updates the Model TIEA Commentary, clarifying in particular the concept of 'foreseeable relevance'
• From mid-2014: Following approval of the CRS by the OECD Council (July 2014), TIEAs decline in importance for automatic exchange; first CRS exchanges take place in 2017. TIEAs remain relevant for exchange of information on request (EOIR)
• 2015: OECD publishes the Model Protocol, enabling contracting states to extend existing TIEAs to include automatic and spontaneous exchange of information
• 2016 onwards: Global Forum conducts ongoing peer reviews (EOIR rounds); TIEAs remain a key instrument for exchange of information on request with numerous jurisdictions

TIEAs are based on the OECD Model Agreement and typically cover the following areas:

• Exchange of information on request: Transmission of information foreseeably relevant for tax administration and enforcement in the requesting state
• Tax types: Typically all taxes of the contracting states (no restriction to specific tax types)
• Sources of information: Banks, financial institutions, nominees, trustees; bank secrecy is not grounds for refusal
• Temporal scope: Typically for tax years after entry into force; many TIEAs have retroactive provisions for criminal matters
• Limitations: Generally no spontaneous or automatic exchange; however, since the 2015 OECD Model Protocol, TIEAs can be extended to include automatic and spontaneous exchange; no fishing expeditions

• Foreseeably relevant: The request for information must substantiate that the information is foreseeably relevant for tax purposes
• No fishing expeditions: Blanket or speculative requests are not permissible
• Bank secrecy no obstacle: Contracting states must gather and transmit bank information, even if national law provides for bank secrecy
• Confidentiality: Received information must be treated with strict confidentiality
• Subsidiarity principle: The requesting state must first have exhausted all its own means of gathering information
• Reciprocity: Both contracting states commit to mutual provision of information

3 corrections:
- last_amended 2015-01-01 incorrect — Model Protocol published August 7, 2015
- key_dates: CRS date 2014-01-01 incorrect — CRS approved July 15, 2014
- official_url returns HTTP 403
2 updates:
- History: 1998 OECD 'Harmful Tax Competition' report missing
- History: 2015 Model Protocol missing
2 clarifications.
4 notes.