Canada’s First Tax Information Exchange Agreement Enters Into Force

On January 1, 2011, Canada's first tax information exchange agreement (TIEA), between Canada and the Netherlands Antilles, entered into force.  Although the Netherlands Antilles formally ceased to exist on October 10, 2010, the Netherlands government has confirmed that the TIEA will apply to the successors of the Netherlands Antilles, which are the islands of Curacao, Bonaire, Saba, Saint Maarten and Saint Eustatius.  The entry into force of Canada's first TIEA offers the Canada Revenue Agency (CRA) access to additional tax information, and provides Canadian taxpayers with greater flexibility and choice of jurisdictions for outbound investments. Canada's TIEAs with ten other jurisdictions are expected to enter into force later in 2011.