Tax Information Exchange Agreement

A TIEA imposes on the agreeing countries a mutual and reciprocal obligation
to exchange information relating to the enforcement of their respective tax
laws. A TIEA provides a means by which a signatory government can pursue
certain tax evaders, particularly in cases involving large tax claims or
drug enforcement. Countries that sign a TIEA agree to: (a) exhange tax
information at the government level in a form admissable to U.S. or host
country courts; (b) collect information without regard to the taxpayer's
nationality; (c) establish a means for compelling the production of tax
information; and (d) ensure that local laws do not prohibit the sharing of
tax information. A TIEA can support tourism in a signatory country because
the Agreement facilitates Internal Revenue Service approval of the
destination as a necessary business expense (deductible for Federal income
tax purposes) for U.S. citizens and companies which seek to justify
attendance at business conventions and seminars in a signatory country.