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Tax Information Exchange Agreements (TIEA) is a bilateral agreement on the exchange of information with respect to taxes. The Agreement provides or exchanges information only on a proper request for criminal and civil tax matters. This process has been developed by the Organisation for Economic Cooperation and Development (OECD) to allow non-OECD offshore financial centre jurisdictions to commit to eliminating harmful international tax avoidance and evasion practices. TIEA enables the obligation between Australia and the non-OECD participating partner to help each other by exchanging correct tax information relevant to the administration and enforcement of their respective domestic tax laws. Australia has already signed a number of TIEAs and is in negotiations with a number of other offshore financial centre jurisdictions.

TIEAs provide broad benefits for the international financial community as well as specific benefits for the relevant offshore financial jurisdiction and Australia.

At an international level, TIEAs

  • Maintain higher standards for the collection of taxpayer and accounting information, promoting transparency and good governance;
  • Increase financial sector stability as well as combating criminal activity;
  • Enhance the jurisdiction's reputation as a legitimate offshore financial centre; 
  • Assist integration of the offshore financial centre jurisdiction into the international financial system and global community.

For Australia, TIEAs

  • Protect Australia's revenue base by providing access to necessary offshore information and improving the integrity of the tax system;
  • Protect compliant businesses and individuals from unfair tax competition from those who evade their tax obligations;
  • Provide an important deterrent to taxpayers considering entering into offshore arrangements to avoid or evade tax.

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