Tax information exchange agreement (TIEA) between Canada and St. Vincent and the Grenadines has entered into force

13.10.2011 TIEA between Canada and St. Vincent and the Grenadines that was concluded last year (22 June 2010) cane into force on 4 October 2011. The provisions of this document fully correspond to the OECD standards.

The agreement contains provisions that help to improve the enforcement and implementation of regulations in the tax area and prevent international fiscal evasion in both jurisdictions.

The document provides information exchange in the banking sector. At the appropriate request it will be possible to disclose the information about the owners of companies, partnerships, trusts and foundations.

Expert’s opinion

“International agreements in the information exchange sphere help to strengthen political and economic relations between the powers. However for foreign business the issue of confidentiality and impossibility under any circumstances to disclose information about specific transactions or beneficiary status is extremely important. However as always a normative act has two sides: the first one helps to improve inter-state relations, the second one has some inconveniences for investors”.

On the basis: www.tax-news.com

Andrianova Irina ( the lawyer of international consulting department of “Honest & Bright” )