Tax Information Exchange Agreements Australia

Tax information exchange agreements (TIEA) are signed by two countries that agree to cooperate on tax matters through the exchange of information. Jersey has been exchanging information with other countries since 2007 using TIEA. 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 addition, it should be noted that Australia`s full double taxation conventions include the exchange of information. It is important to provide some exceptions to the provision of information in Australian TIEAs (which are generally the same as in the agreement model). The Australian TIEAs do not oblige either jurisdiction: 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). 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. Finally, the Australian TIEAs provide, as does the agreement model, that a required contracting party cannot refuse to provide information, since the tax claim that leads to the request for information is disputed by the taxpayer.

They help governments enforce national tax laws by allowing the exchange of relevant tax information on request. Unlike double taxation conventions, TIEAs do not always eliminate double taxation of income. An OECD working group has been tasked with developing a legal instrument to use effective exchange of information, and the agreement model is the standard for effective exchange of information within the OECD`s initiative on harmful tax practices.

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