This model was born from the OECD`s work to combat harmful tax practices that distort competition in the global mobile financial services market. One of the key criteria for identifying harmful tax practices is the lack of an effective exchange of information. The model can serve as a basis for the conclusion of information exchange agreements. In accordance with the model agreement, the exchange of information takes place only on request (as opposed to the automatic or spontaneous exchange of information) and each TIEA sets out guidelines and criteria according to which the requesting party must submit its request for information. The requesting party may only request predictable information for the management and enforcement of its laws. It may not participate in fishing expeditions or request information that may not be relevant to the tax matters of a given taxpayer. The agreement gave rise to the development of the OECD to combat harmful tax practices. The lack of an effective exchange of information is one of the key criteria for determining harmful tax practices. The agreement is the standard for an effective exchange of information within the meaning of the OECD Initiative on Harmful Tax Practices.
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. This agreement contains two model bilateral agreements developed taking into account the commitments made by the OECD and the related countries. The working group was chaired by Malta and the Netherlands and marks the first results of the OECD`s cooperation with jurisdictions that are committed to improving transparency and establishing an effective exchange of information in tax matters. Donald J. Johnston, Secretary-General of the OECD, welcomed the breakthrough of the model and, in particular, the constructive participation of non-financial centres in this endeavour: “I have always said that it is important for the OECD to find new ways to carry out its work and to seek contributions beyond its own membership. That is why, in 2000, the OECD set up a number of global forums that would provide a framework for our discussions with non-OECD countries in certain key areas. For further information, please contact the OECD Media Relations Section (tel.  45 24 97 00). “I am very pleased that this framework has not only proven itself as a dialogue-enabler, but has also achieved concrete results that enable members and non-members to improve cooperation in tax matters,” for both members and non-members.” .