An introduction to automatic exchange of information, including the Foreign Account Tax Compliance Act (known as FATCA) and the Common Reporting Standard (SIR), can be found at: Offshore Tax Evasion – Overview and Practical Notice: Automatic Exchange of Information – Contour. 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. Tax Information Exchange Agreements (TIEA) provide for the exchange of information on request in the context of a specific criminal or civil tax investigation or civil tax matter under investigation.  A TIEA model has been developed by the OECD Global Forum Working Group on Effective Information Exchange. The United Kingdom also exchanges information with other countries for tax purposes: information exchange provisions are also included in tax treaties. In June 2015, the OECD`s Tax Affairs Committee (CFA) approved a standard protocol on the agreement. The standard protocol can be used by jurisdictions if they wish to extend the scope of their existing TIEAs to the automatic and/or spontaneous exchange of information. Each jurisdiction has a competent authority capable of gathering relevant information. Most of them are special offices affiliated with tax authorities engaged in the fight against tax evasion.
At Tax Free Today, we have already done a lot of work on the topic of SIR and its automatic exchange of information. But today we will take a brief look at its predecessor, the TIEAs, which still coexist today, but which are more limited. In any event, there is no requirement for countries to exchange information, beyond the risk to their reputation, which offers some leeway. We felt that the impact on its ability to continue working in this area would be disproportionate to the value of the information obtained by HMRC. Unlike double taxation conventions, TIEAs are only used to detect tax evasion.