Tax Information Exchange Agreements ("TIEAs"): The Transition to Automatic Information Exchange

The end of banking secrecy as we know it is here. With an increase in TIEAs being signed throughout the offshore region, nation states are fostering the international co-operation needed for transparency in the global financial sector. However, with the exchange of information upon request becoming the norm, the tide has become even stronger! There has been a call for greater transparency in tax information, and therefore the creation of a system of automatic information exchange. Automatic information exchange is the process by which tax information would be exchanged in an isochronous and organised fashion between the requesting country and the requested country. The Isle of Man has made a commitment to implement a system of automatic exchange of information by July 2011. Jersey has also stated that it will commit to introducing an automatic exchange of information.

Where do we go to next? Can there be anywhere to go?