Taxation / Taxation / Tax Information Exchange Agreements (TIEA)
Tax Information Exchange Agreements (TIEA)
- Definition and Purpose:
- A Tax Information Exchange Agreement (TIEA) is a mutual agreement between countries that facilitates the exchange of information relevant to the administration and enforcement of their respective domestic tax laws.
- The exchanged information typically pertains to the determination, assessment, and collection of taxes, recovery and enforcement of tax claims, as well as investigations and prosecutions.
- Objectives of TIEA:
- The primary purpose of TIEAs is to promote international cooperation in tax matters.
- They enable countries to share crucial tax-related information, fostering transparency and combating tax evasion and avoidance.
- India's Involvement in TIEAs:
- As of 2019, India had entered into 21 TIEA arrangements with various countries.
- These agreements strengthen India's ability to access information needed for effective tax administration and enforcement.
