Tax information exchange agreement (ties)

A Tax Information Exchange Agreement (TIEA) is an international cooperation arrangement under which participating countries share specific tax-relevant information upon request. These agreements are designed to help governments detect undeclared assets, uncover illicit financial activity, and strengthen enforcement of tax laws. Through a TIEA, a country may obtain data such as account holdings, beneficial ownership details, or financial transactions relating to individuals or businesses with cross-border ties.

Example: If tax officials in Country A believe that one of their residents has diverted income to Country B to avoid reporting it, they can submit an official request under the TIEA. Country B must then provide the relevant financial information, enabling Country A to pursue appropriate tax action.