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Discussion on model Agreement for automatic exchange of information

02 July 2013   (0 Comments)
Posted by: Author: Chartered Accountants Ireland
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Author: Chartered Accountants Ireland

HMRC has published a discussion document on the implementation of the model Agreement to be entered into between the UK and the Crown Dependencies (CDs) and Overseas Territories (OTs) to improve international tax compliance. Comments thereon are requested by 6 September 2013.

Readers should be aware of the current moves towards greater automatic exchange of tax-related information influenced both by the US Foreign Account Tax Compliance Act legislation and the ongoing public debate on tax avoidance and evasion.

Following on from the recent announcement that the UK Government had agree to pursue agreements with its OTs and CDs, HMRC have now published a model inter-governmental Agreement (IGA) to be used as the basis of these discussions.

HMRC note that the IGA aims for maximum consistency with the UK/US Intergovernmental Agreement and the agreements being negotiated between the CDs and OTs. However, there are several areas where the UK Model Agreement diverges from the US model "due to differences in context, for example the taxation systems”.

One area of difference will be an option for CDs and OTs to provide an alternative reporting regime for individuals who are not UK domiciled and who are subject to the remittance basis of taxation in the UK.

While the Model Agreement contained in the discussion document is being used as the basis for discussion with both the CDs and the OTs, the UK will only be required to implement domestically its agreements with the CDs because the agreements that the UK is negotiating with the OTs will be fully reciprocal (information will flow both from the UK to the CDs and from the CDs to the UK).

The discussion document covers implementation issues that will affect UK business. In addition, as UK Financial Institutions will only have reporting obligations under the reciprocal agreements it is the reciprocal version of the Model agreement that is attached to the discussion document. 


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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