The U.S. Department of the Treasury has announced that the United States and Monaco have signed an agreement to allow for the exchange of information on tax matters between the two countries. The agreement was signed by Deputy Secretary Neal Wolin and Minister Franck Biancheri in Washington.
"This Administration is wholeheartedly committed to combating offshore tax evasion," said Deputy Secretary Wolin. "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."
The Tax Information Exchange Agreement (TIEA) with Monaco will provide the United States with access to information it needs to enforce U.S. tax laws, including information related to bank accounts in Monaco. The TIEA will permit the United States to seek information from Monaco, beginning in 2010, on all types of taxes in both civil and criminal matters regarding 2009 and later tax years. As is customary with such agreements, only specific tax authorities will be allowed to receive and send information. Information exchanged pursuant to the TIEA may be used only for tax purposes, and the tax authorities must safeguard the confidentiality of information exchanged pursuant to the TIEA.
In recent months, the Administration has demonstrated its commitment to closing the tax gap. At the G-20 Leaders' Summit in London, the U.S. strongly supported efforts to ensure that all countries adhere to international standards for exchange of tax information. In the FY 2010 Budget, the Administration delivered a detailed reform agenda to reduce the amount of taxes lost through unintended loopholes and the illegal use of hidden accounts by well-off individuals. The Treasury Department has concluded Gibraltar's first-ever tax information exchange agreement and has also concluded an agreement with Luxembourg to provide for greater exchange of tax information. In June, the Treasury Department announced an agreement with Switzerland to amend the U.S.-Switzerland income tax treaty to provide for increased tax information exchange.