January 31, 2013
The Honourable Jim Flaherty, Minister of Finance, today announced that Canada has signed a tax information exchange agreement (TIEA) with Liechtenstein. The agreement sets out the legal framework to enable tax authorities in both countries to exchange information relevant to the administration and enforcement of their respective domestic tax laws.
“This agreement is another significant step in our fight against international tax evasion,” said Minister Flaherty. “Our Government remains committed to continuing to implement the international standard for the effective exchange of tax information.”
The standard, developed by the Organisation for Economic Co-operation and Development (OECD), promotes transparency and fights international tax evasion through the effective exchange of information.
In support of this standard, the Harper Government introduced incentives in Budget 2007 to have non-tax treaty jurisdictions enter into TIEAs with Canada. It also required that all new treaties and revisions to existing treaties include the OECD standard.
Canada has so far brought into force TIEAs with 16 jurisdictions and concluded or updated several tax treaties that include the OECD standard. It is also negotiating TIEAs with more than a dozen other jurisdictions. More information on these negotiations can be found on the Department of Finance website.