Uk Tax Information Exchange Agreements
Clients with offshore assets and structures should immediately check their 2016 tax returns to ensure that the assets and structures of these revenues have been properly disclosed, particularly when the asset or structure is located in a country that the UK has included in a CAA, and there are now more than 45 such jurisdictions. If HMRC finds, through the AIA, that the information has not been included in the relevant client`s performance, it is necessarily verified whether past revenues and profits from the same sources have been properly disclosed. This can lead to HMRC tax evasion. This publication is available at www.gov.uk/government/publications/tax-information-exchange-agreements-overview/tax-information-exchange-agreements-overview HMRC issued a press release to our customers in Schedule 36, in which the information and names of the companies concerned were requested. The date on which individual agreements take effect depends on the specific provisions of each convention. The provisions on the exchange of information are also included in tax treaties. To our surprise, HMRC reissued a TIEA to get the same information we said. TIEAs generally do not specify the information to be exchanged. Jurisdiction B should attempt to respond to requests for jurisdiction A, as far as local laws permit and provide for.
The 2008 global financial crisis led to a massive drop in government revenues and governments argued that the revenue crisis had been exacerbated by multinationals (MNE) and wealthy individuals who concealed assets and cash in offshore structures. Without a simpler way of accessing information on assets and structures, governments would be at a disadvantage if they decided which individuals and institutions to examine. But HMRC clearly has not exhausted its information-gathering processes and, in this case, has agreed a timetable with the customer to provide it. At least the official should wait to receive our client`s information. Under the convention model, the exchange of information is only on request (as opposed to the automatic or spontaneous exchange of information) and each TIEA sets out guidelines and criteria by which the applicant must submit its request for information.