Panama City, Panama, March 17, 2013
Canada Partners With Panama to Fight International Tax Evasion
The Honourable Diane Ablonczy, Minister of State of Foreign Affairs (Americas and Consular Affairs), on behalf of the Honourable Jim Flaherty, Minister of Finance, was in Panama today where she announced that Canada has signed a tax information exchange agreement (TIEA) with the Central American country.
“As part of Canada’s foreign policy priority of deepening engagement in the Americas, our Government is committed to cooperating with our neighbours toward our common interests,” said Minister Ablonczy. “This agreement will help us to build a more transparent, rules-based environment with one of Canada’s key trading partners in Central America.”
The agreement sets out the legal framework to enable tax authorities in both countries to exchange information relevant to the administration and enforcement of their respective domestic tax laws.
“This agreement supports our fight against international tax evasion,” said Minister Flaherty. “Our Government remains committed to continuing to implement the international standard for the effective exchange of tax information.”
The standard, developed by the Organisation for Economic Co-operation and Development (OECD), promotes transparency and fights international tax evasion through the effective exchange of information.
In support of this standard, the Harper Government introduced incentives in Budget 2007 to have non-tax treaty jurisdictions enter into TIEAs with Canada. It also required that all new treaties and revisions to existing treaties include the OECD standard.
Canada has so far brought into force TIEAs with 16 jurisdictions and concluded or updated several tax treaties that include the OECD standard. It is also negotiating TIEAs with several other jurisdictions. More information on these negotiations can be found on the Department of Finance website.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance