Expanding the use of TIEAs: Will an increase in information sharing and further cooperation between the ATO, Australian and global governments and institutions have a noticeable impact on tax evasion?

Catherine Gaibl, Caroline Dick
2016 ATTA Annual Conference   unpublished
Tax evasion is a problematic and complex form of tax crime. It can take a variety of forms and can involve many highly sophisticated schemes established by individuals and organisations. The mechanisms implemented both domestically and internationally, aimed at reducing and significantly impacting on these crimes, have varied over the years. The integration of states in an increasingly globalised context has recently played a significant part in deciding how best to approach tax evasion.
more » ... tax evasion. However, due to the secretive and sophisticated nature of tax evasion schemes, the extent of damage and the costs associated to economies is still extremely difficult to quantify. This paper seeks to pinpoint one specific key measure that is regarded as a potential valuable solution in combating tax evasion crimes. The creation of bilateral Tax Information Exchange Agreements (TIEAs) in recent years has represented that key measure. An in depth analysis examining the nature of TIEAs and their effectiveness has, as of yet, been minimal, and gaps remain in terms of understanding their evolution, advantages and disadvantages. This paper demonstrates the reality of bilateral TIEAs, in that they need time to take effect, given many countries are still yet to implement them and that their use remains fairly novel. Furthermore, due to the complexity of tax evasion, it may be necessary to consider multiple other approaches alongside TIEAs. This paper, suggests that after examining recent events and various opinions which address the expansion of bilateral TIEAs, that it will undoubtedly take further investigation to establish whether the legislative reforms and programs associated with TIEAs are effective.