Fighting tax evasion: EU and San Marino negotiate.

 

27.05.2015

 

The EU Commission is currently conclude negotiations for new tax transparency agreement, which will significantly improve the fight against tax evasion with San Marino, which are expected to be signed before the end of the year. Under the future agreement, both sides will automatically exchange information on the financial accounts of each other's residents. This spells an end to bank secrecy for EU residents and will prevent tax evaders from hiding undeclared income in accounts.

 

The automatic exchange of information is widely recognised as one of the most effective instruments for fighting tax evasion. It provides tax authorities with essential information about their residents' foreign income, so that they can assess and collect the taxes that are due on them.

 

Under the new EU agreement, Member States will receive, on an annual basis, the names, addresses, tax identification numbers and dates of birth of their residents with accounts, as well as other financial and account balance information. This new transparency should not only improve Member States' ability to track down and tackle tax evaders, but it should also act as a deterrent against hiding income and assets abroad to evade taxes. The new agreement is fully in line with the strengthened transparency requirements that Member States agreed amongst themselves last year. It is also consistent with the new OECD/G20 global standard for the automatic exchange of information.