Thursday, October 13, 2011
Last year's tax information exchange agreement (TIEA) signed between Canada and St. Vincent and the Grenadines has entered into force, the provisions of which are based on the Organization for Economic Cooperation and Developmentís internationally agreed standard on exchange of tax information.
The deal, signed on June 22, 2010, provides for the mutual exchange of tax information possessed by, or accessible to, the taxation authorities of either jurisdiction. It is designed to provide for the better administration and enforcement of taxation laws and to prevent international fiscal evasion.
The TIEA entered into force on October 4, 2011, and is effective from that date.
As per the text of the agreement, the information exchangeable includes that foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters.
The TIEA also provides for the exchange of information held by banks and other financial institutions, along with information regarding the ownership of companies, partnerships, trusts, and foundations.