Tax Information Exchange Agreements (TIEAs)

Tax Information Exchange Agreements (TIEAs) are agreements between two or more countries to share information related to taxes. Their main purpose is to combat tax evasion by allowing tax authorities to access financial information held in different jurisdictions. This cooperation helps countries ensure that individuals and businesses pay the correct amount of tax. TIEAs are typically established between countries that want to enhance transparency and promote fair tax practices, especially where one country offers low taxation or banking secrecy that may encourage tax avoidance.