Document background
The Tax Information Exchange Agreement (TIEA) serves as a crucial instrument in Canada's international tax cooperation framework. This document type is utilized when establishing formal arrangements for the exchange of tax information between Canada and other jurisdictions, particularly with countries with which Canada does not have a comprehensive double tax treaty. The agreement becomes necessary when there is a need to combat tax evasion, promote tax transparency, and ensure effective exchange of tax-related information while maintaining appropriate safeguards and confidentiality measures. It is governed by Canadian federal law, particularly the Tax Information Exchange Agreements Act and the Income Tax Act, and must comply with international standards for tax transparency and information exchange. The agreement typically includes detailed provisions for both automatic and on-request information exchange, specifying the scope, procedures, and limitations of such exchanges.
