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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.