UK Legislates For Three TIEAs

by Robert Lee, Tax-News.com, London

01 July 2011

The UK has begun its ratification process of three tax information exchange agreements (TIEA), with Aruba, Liberia and the former Netherlands Antilles islands.

Each of the three agreements broadly follows the Organization for Economic Cooperation and Development model convention, and provides for the exchange of information for tax purposes.

The TIEAs also allow for the exchange of information held by banks and other financial institutions, and of information on the ownership of companies, partnerships, trusts and foundations.

The TIEA with Aruba covers all taxes imposed in both territories, and was signed on November 5, 2010. The Liberian agreement also covers all taxes, and was inked on November 1, 2010.

The agreement with the former Netherlands Antilles islands of Curaçao, Sint Maarten and the BES Islands (Bonaire, Sint Eustatius and Saba), was signed on September 10, 2010. In the islands, it covers income tax, wages tax, profit tax and surtaxes on the income and profits taxes. In the UK it covers all taxes.

The Aruba and Curaçao, Sint Maarten and BES Islands TIEAs will enter into force on the first day of the second month after the later of the two signatory governments to complete its legislative procedures has done so. In the case of Liberia, the TIEA will enter into force on the date the later of the two countries to complete its legislative procedures has done so.

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