Tax Information Exchange Agreements (TIEAs) provide for the exchange of information on tax matters, and Canada has concluded TIEAs with several countries, including Antigua and Barbuda, Anguilla, Aruba, Bahamas, Bahrain, Bermuda, British Virgin Islands, Brunei, Cayman Islands, Cook Islands, Costa Rica, Dominica, Faroe Islands, Grenada, Guernsey, Isle of Man, Jersey, Liechtenstein, Netherlands Antilles, Panama, Saint Marino, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Turks and Caicos Islands and Uruguay.
Canada has agreed to exchange tax rulings with eligible jurisdictions from 1 January 2017 in implementation of BEPS Action 5. A specific ruling can be exchanged with a relevant jurisdiction if it is international in nature and affects the relevant jurisdiction. The exchange is possible if there is an agreement between Canada and the relevant jurisdiction providing for the spontaneous exchange of tax information. The agreement can be a tax information exchange agreement (TIEA), a tax treaty or the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
Effective 2018, Canada has adopted measures to implement the automatic exchange of financial account information with the global standard for exchange of information developed by the OECD under the Common Reporting Standard (CRS).
Further, Canada concluded an Intergovernmental Agreement (IGA) with the United States on 27 June 2014 to improve international tax compliance and to implement the US Foreign Account Tax Compliance Act (FATCA).
Effective June 2019, Canada introduced the Ultimate Beneficial Ownership (UBO) disclosure requirement under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Under the law, certain financial entities, securities dealers, life insurance brokers, money service businesses and other transactional organizations in Canada are required to make mandatory disclosure of their ultimate beneficiaries. An ultimate beneficiary generally includes any individual with at least 25% direct or indirect ownership interest in an entity.
The details of the ultimate beneficiaries must be maintained and updated continuously. In case of an intentional failure to comply with the UBO requirements, the directors or officers in charge can be liable to a penalty of up to CAD 200,000 or up to 6 months of imprisonment.