Under the TIEA, contractors must have a legal and administrative framework in place to support their obligation to exchange information. For example, the ability to exchange information cannot be hindered by restrictions such as bank secrecy laws or a restriction, only to obtain and exchange the information necessary for their national tax administration. The agreement and the corresponding provisions are described in 12 articles. Article I deals with the object and scope of the agreement. Article 2 deals with jurisdictional issues. Article 3 provides that the taxes subject to the Agreement shall be of any kind and description imposed by both Governments, including their subdivisions, local authorities and political subdivisions. Article 4 defines the keywords. Article 5 concerns the exchange of information on request. Article 6 provides that persons shall be interviewed and that recordings shall be verified with the prior written consent of the parties concerned. Article 7 deals with the procedural aspects of rejecting such requests for the exchange of information. Article 8 governs its implementation. Article 9 examines the mutual agreement procedure. Article 10 concerns the application of the Agreement.
Article 11 deals with confidentiality and last Article 12 with the termination of the agreement. In June 2015, the OECD Committee on Fiscal Affairs (CFA) approved a model protocol to the agreement. The standard protocol can be used by legal systems if they wish to extend the scope of their existing TIEAs to the automatic and/or spontaneous exchange of information. For the automatic exchange of information, see exchanges of letters with Bermuda The Government is currently reviewing international tax regimes. For more information on the impact that potential international legislative changes may have on you, see The New Legislation. The legality of intergovernmental agreements (ISAs) has been questioned on the grounds that any agreement between governments that significantly binding any government constitutes a treaty. Since the U.S. Constitution does not allow the executive branch to unilaterally implement treaties without the consent of the Senate, many argue that GAs have no basis in the U.S. Constitution.  THE ISGs were not described or provided for in the Fatca legislation, but were designed and implemented a posteriori, when it became clear that FATCA would fail without it.  The purpose of this Agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Exchange of Information.
TIEAs are different from extended international tax treaties (also known as tax treaties or double taxation treaties) because they do not contain provisions on the allocation of taxing rights among incomes. . . .