This agreement, published in April 2002, is not a binding instrument, but includes two model bilateral agreements. A large number of bilateral agreements have been based on this agreement (see below). The Cayman Islands also had eight bilateral tax information agreements at that time, including the recent agreements with the Nordic countries. At that time, the Cayman Islands` tax information exchange network included four of the seven G7 countries and seventeen of the 30 OECD member countries. The 12th pioneering agreement on the exchange of tax information in the Cayman Islands was signed in August 2009 with New Zealand and the jurisdiction was put on the white list of countries that have “essentially implemented” the tax standard internationally adopted by the OECD. Since then, the number of TIEAs in force has increased. This exchange of information on the application is supplemented by automatic process on 29 October 2014.  The automatic process is to be based on a Common Reporting Standard. In addition to the exchange of information, the TIEAs, closed by Germany, provide for the possibility for officials of the requesting State to enter with the agreement of the Federal Republic of Germany and to independently put questions and documents to the parties to the proceedings with their consent.  To do this, a national tax officer must always be present throughout the duration of the foreign tax officer`s deeds of service.
Under the same conditions, a foreign agent may be present at an external tax audit. Since the agreements are bilateral, the rights of presence also apply to German officials during the official act abroad. Tax Information Exchange Agreements (TIEAs) provide for the exchange of information on request concerning a criminal or civil tax investigation or civil tax matters under investigation.  A TIEA model was developed by the OECD Global Forum Working Group on Effective Exchange of Information. The first steps towards Tax Information Exchange Agreements (TIEAs) were taken in March 2009, when the Government of the Cayman Islands made arrangements to allow access to comprehensive tax assistance with 20 countries, including the majority of Cayman`s major trading partners. The legality of intergovernmental agreements (ISAs) has been questioned on the grounds that any agreement between governments that significantly binding any government constitutes a treaty. Since the U.S. Constitution does not allow the executive branch to unilaterally implement treaties without the consent of the Senate, many argue that GAs have no basis in the U.S. Constitution.  THE ISGs were not described or provided for in the Fatca legislation, but were designed and implemented a posteriori, when it became clear that FATCA would fail without it.  A model for requesting information under TIEAs has been developed to assist the competent authorities of TIEA partners in requesting information. It is available in English and French as well as Spanish, German, Italian, Japanese, Korean and Turkish.
In this way, jurisdictions may base a bilateral agreement on the competent authority for the purpose of introducing the automatic exchange of information in accordance with the common information standard or the automatic exchange of country reports on an TIEA, in particular where the automatic exchange of information under a relevant multilateral agreement of the competent authority is not (yet) possible. Legal systems may also choose to use the text of the articles of the Model Protocol if they wish to include in a new TIEA the provisions on the automatic and spontaneous exchange of information. 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. .