For more information, journalists are encouraged to contact the OECD`s Media Relations Division (tel.  45 24 97 00). The aim of this agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Information Exchange. 18/04/2002 – The OECD has published a model for the effective exchange of tax information developed by the OECD`s Global Working Group on Effective Information Exchange, involving representatives from several OECD countries and Aruba, Bermuda, Bahrain, the Cayman Islands, Cyprus, the Isle of Man, Malta, Mauritius, the Netherlands Antilles, Seychelles and San Marino. 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). Jurisdictions can also use the text of the articles in the model protocol if they wish to include the automatic and spontaneous exchange of information in a new TIEA. 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 model was born out of the OECD`s work to combat harmful tax practices that distort competition in the global mobile financial services market. One of the most important criteria for identifying harmful tax practices is the lack of effective exchange of information. The model can be used as a basis for the conclusion of information exchange agreements.
Under the convention model, the exchange of information is only on request (as opposed to the automatic or spontaneous exchange of information) and each TIEA sets out guidelines and criteria by which the applicant must submit its request for information. The applicant can only request information that is predictable for the management and application of its legislation. It is not authorized to conduct fishing expeditions or to request information that is probably not relevant to a particular taxpayer`s tax issues. The agreement contains two models of bilateral agreements developed taking into account commitments made by the OECD and promised legal systems. The working group, led by Malta and the Netherlands, marks the first results of OECD cooperation with legal systems committed to improving transparency and ensuring an effective exchange of tax information. A TIEA is a bilateral agreement whereby legal systems agree to cooperate in tax matters through the exchange of information. 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. 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.