Tax information exchange agreements (TIEA) provide for the exchange of information on request relating to a specific criminal or civil tax investigation or civil tax matters under investigation.[1]
A model TIEA was developed by the OECD Global Forum Working Group on Effective Exchange of Information. This exchange of information on request was supplemented by an automatic process on 29 October 2014.[2] The automatic process is to be based on a Common Reporting Standard.
Typically, a TIEA contains the following provisions:
The legality of Intergovernmental Agreements (IGAs) has been challenged on the basis that any agreement between governments which bind each government essential represents a treaty. As the United States constitution does not permit the Executive Branch to unilaterally implement treaties without the consent of the senate, many maintain that IGAs lack a basis in the US constitution.[3] IGAs were not described or envisioned in the FATCA legislation, but were conceived and implemented after the fact when it became clear that FATCA would fail without them.[4]
