Tax Information Exchange Agreements – The Essentials

BACKGROUND

1. The purpose of TIEAs is to facilitate the exchange between countries of information relevant to the enforcement of tax laws. TIEAs have their origins in the OECD's initiative on "harmful tax practices", launched in 1998. In 2002 Jersey publicly committed itself to supporting the initiative. The need to exchange tax information is a major part of the initiative.

2. TIEAs have now been concluded between Jersey and 21 countries: the USA, the Netherlands, Germany, Norway, Sweden, Denmark, Greenland, the Faroe Islands, Finland and Iceland, the UK, France, Ireland, Australia, New Zealand, Portugal, the People's Republic of China, Turkey, Mexico, Canada and Indonesia. All are currently in effect, except the People's Republic of China, Turkey, Mexico, Canada and Indonesia which will come into effect some time in 2011.