Canada Expanding TIEA Network
Monday, June 6, 2011
Canada's network of tax agreements is in the process of substantial expansion, with the
entry into force of two tax information exchange agreements (TIEA), and the commencement
of negotiations on four others announced by the Department of Finance.
Canada's TIEA with the Cayman Islands entered into force on June 1, having
been signed on June 24, 2010. The Bermudian deal, agreed to on June 14, 2010,
will be applicable from July 1.
Both treaties follow the same blueprint, and are applicable to taxes on income and taxes on capital in each territory. They provide for the exchange of information
relevant to the administration of domestic tax laws, and to the collection of
tax, and investigation or prosecution of criminal matters.
They also permit the request of information held by banks and other financial
institutions, and information relating to the ownership of companies, partnerships,
trusts and foundations.
The commencement of four sets of talks has also been announced by the Department,
albeit somewhat belatedly.
TIEA negotiations with Antigua and Barbuda began on November 26, 2010, followed
by negotiations with Grenada the following day. Talks with Montserrat started
on December 3, 2010, and, most recently, with Uruguay on March 4, 2011.