The automatic exchange of information is the systematic and regular collection and transmission by the country of origin of «mass» tax data to the country of residence of the subject, without the latter having to request it. The exchange of information through the AIA is authorized by the provisions of the DBAA (except express prohibition) and by the Multilateral Convention (MAAC). Receiving jurisdictions are expected to set up a procedure for the use of mass information to match income or accounts obtained abroad with the income or accounts indicated in their tax returns, in order to detect, if any, cases of tax evasion. TIEAs differ from global international tax treaties (also known as tax treaties or double taxation agreements) because they do not contain provisions for the distribution of income tax duties. Each TIEA defines the obligation between Australia and the non-OECD partner to help each other by exchanging correct tax information relevant to the management and enforcement of their national tax laws (civil and criminal). The information can only be provided on request, i.e. a court is not required to provide information that it has not requested from the other jurisdiction. 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. The exchange of information on request was completed by an automatic procedure on 29 October 2014. [2] The automatic process must be based on a common reporting standard. 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. In this regard, legal systems may be based on a bilateral agreement between the competent authority for the implementation of the automatic exchange of information in accordance with the common standard of notification or automatic exchange of reports by country on a TIEA, particularly in cases where it is not (yet) possible to automatically exchange information through the relevant authority within the framework of a relevant multilateral agreement. The government is constantly reviewing international tax regimes. You will find information on the impact that any changes in international law may have on you in the new legislation. Under TIEA, contractors must have a legal and administrative framework to support their obligation to exchange information. For example, the ability to exchange information cannot be hampered by restrictions such as the Bank Secrecy Act or the restriction on the acquisition and exchange of information necessary for their national tax administration. (b) to provide information that cannot be obtained under the law or in the normal course of administration of the State party concerned or the other State party concerned; 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. Offshore tax evasion undermines the fairness and integrity of Australia`s tax system.

Moreover, in the age of globalization, the willingness of other governments to exchange information is an important element in the application of national tax legislation. The legality of intergovernmental agreements (IGAs) has been called into question on the grounds that any agreement between governments binding each government is a treaty.