Hon Chairperson, in terms of the Organisation for Economic Co-operation and Development model, tax information exchange agreements form the foundation of the vast majority of tax information agreements across the world. The tax information agreements ensures that bank secrecy or the absence of domestic tax interest can no longer be used to deny a request for the exchange of information. The purpose of these agreements is to allow for the effective exchange of information between the governments and tax authorities of the Republic of South Africa and Gibraltar, Commonwealth of Dominica and the Republic of Liberia in terms of section 231(2) of the Constitution of the Republic of South Africa. The agreements provide for the exchange of information that is foreseeably relevant to the enforcement of the domestic laws of the parties concerning the taxes and tax matters covered by the agreement. It also includes information that is foreseeably relevant to the determination, assessment, enforcement or collection of tax with respect to persons who are subject to such taxes or the investigation of tax matters or the prosecution of criminal tax matters in relation to such persons. The requested party shall ensure that effective information is not unduly prevented or delayed.
Having considered the request for approval by Parliament of the agreements between the governments of the Republic of South Africa and Gibraltar, Commonwealth of Dominica and Republic of Liberia for the exchange of information with respect to taxes and tax matters, the Select Committee on Finance recommended that the Council, in terms of section 231(2) of the Constitution of the Republic of South Africa 1996, approves said agreements. I so move. [Applause.]