Grenada is the most recent country to have signed a tax information exchange agreement (TIEA) with South Africa, bringing to 15 the number of TIEAs we have signed. With the exception of Argentina, which isn’t renowned as a tax haven, the rest are commonly recognised as what are now politely called overseas investment centres. What they all have in common is that South Africa does not have double tax agreements with any of them.
The TIEA with Grenada follows a familiar format. The Parties agree to provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of their respective domestic laws of the Parties concerning the taxes covered by this Agreement, including information that is foreseeably relevant to the determination, assessment, enforcement or collection of tax, or to the investigation of tax matters, or the prosecution of criminal tax matters The provisions of the TIEA do not override the rights of taxpayers enshrined in the local laws. A requested Party is not obliged to provide information which is neither held by its authorities nor in the possession of or obtainable by persons who are within its territorial jurisdiction. The Parties agree to use their best endeavours to ensure that the effective exchange of information is not unduly prevented or delayed.
It is interesting to note that donations tax is a notable exception from the list of South African taxes covered by the TIEA. All our other taxes are provided for.
The remaining clauses are unremarkable and familiar from previous TIEAs and it would be repetitive to discuss them in detail here. Tax practitioners with clients in Grenada should merely be alert to the existence of the TIEA with Grenada in what yet another tightening of the noose around global tax avoidance.
