Monaco and US Sign Tax Agreement

September 9, 2009 International Tax CooperationOffshore BankingTaxation in MonacoTaxation in USA  No comments

Monaco and the US signed a bilateral Tax Information Exchange Agreement on the 8th of September.

The Taxation Information Exchange Agreement (TIEA) between the city-state of Monaco and the US will allow each jurisdiction a greater set of capabilities in fighting cross border tax evasion. The agreement will allow either nation to request bank, tax and other information from the other jurisdiction on the grounds that there have already been reasonable attempts made to obtain it by other means. The agreement also extends to allow officials from one country to enter the other for the purpose of conducting necessary interviews. Although, these capabilities are restricted to a case by case basis and have absolutely no scope “information fishing”. The agreement comes into force in 2010 and extends to both civil and criminal court proceedings.

At the TIEA announcement Neal Wolin, US Deputy Treasury Secretary, said “This administration is wholeheartedly committed to combating offshore tax evasion,” and also ”We are working with countries like Monaco to ensure that the IRS has access to the information that it needs to enforce U.S. tax law. Today’s agreement serves as an example for other financial centers around the world and reflects our continued efforts to end the use of offshore accounts as a tool for tax evasion.”

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