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. The Cayman Islands also had, at that time, eight bilateral tax information agreements, which also included recent agreements with the Nordic countries. At that time, the Cayman Islands tax information network included four of the seven G7 countries and seventeen of the 30 OECD countries. 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. Jersey can also exchange tax information with other countries under the double taxation conventions, the multilateral convention and with EU member states under the EU Savings Tax Directive. THE FATCA requires U.S. financial institutions to withdraw a portion of payments to foreign financial institutions (FFIs) that do not agree to identify and report information about U.S. account holders. The IGA between the United States and France is the version of Model 1A, which means that in France, FFI are required to directly disclose tax information about U.S. account holders to the French government, which in turn will transmit this information to the IRS. The IRS will respond with similar information about French account holders. They all declared their participation in the Harmful Tax Practices Initiative and their obligation to respect the principles of transparency and effective exchange of information.
They must now establish and implement a comprehensive legal framework to combat money laundering applicable to all sectors of their offshore financial services sector and adopt legislation that facilitates the exchange of information on tax issues with foreign jurisdictions directly through their competent authority. The agreement was born out of the OECD`s work on combating harmful tax practices. The lack of effective exchange of information is one of the main criteria for determining harmful tax practices. The agreement is the standard for the effective exchange of information within the meaning of the OECD`s initiative on harmful tax practices. To summarize Jersey`s international tax treaties and progress with countries that have not yet signed an agreement with Jersey, download the document below: 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.