Friday, February 18, 2011
Tax Information Exchange Agreements initialled by the Czech Republic, with the Isle of Man and Guernsey, were approved by the Czech parliament on February 16, Prime Minister Petr Necas announced, noting they are the first such agreements to be adopted by the nation.
Both agreements were initialled by the respective governments on February 3, when Finance Minister, Miroslav Kalousek, stated that the agreements would prove to be “important tools in the fight against tax evasion with a positive impact on public budgets.”
“It is in the interest of the Czech Republic to conclude similar agreements as soon as possible... currently we have three agreements in negotiations with other countries.”
The TIEAs remain to be signed before they can be ratified and enter into force. According to Necas, the agreements with Guernsey and the Isle of Man are the first of a number of such agreements that are under negotiation by the government.
When the agreements' provisions enter into force, it will enable the signatory countries to request tax information from the other country's tax authority where there is evidence of the perpetration of fiscal crime.