FIXING TAX EVASION: EU AND PRINCIPALITY OF MONACO INITIAL AGREEMENT

by G.Errico with the Team

MONACO.The EU and Monaco have today initialled a new tax transparency agreement marking another major step forward in the fight against tax evasion. The agreement provides that Monaco and EU Member States will automatically exchange information on the financial accounts of one another’s residents from 2018. The information will start being collected from 1 January 2017.
The agreement reflects the Principality’s political will to move towards greater tax transparency. Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, believes that: ‘…this agreement marks the beginning of a new era between Monaco and the EU. We both aim to combat fraud for the benefit of honest taxpayers. This agreement is a step forward in achieving our aim in an efficient and fair manner’. Jean Castellini, Minister for Finance and Economy of Monaco, said: ‘The initialling of this agreement constitutes a further example of the policy implemented by Monaco to combat international tax avoidance and evasion, as part of its commitment to conclude agreements which respect international standards developed by both the European Union and the OECD Global Forum, in terms of the exchange of information’. Under the new agreement, Member States will receive the names, addresses, tax identification numbers and dates of birth of their residents with accounts in Monaco, as well as certain other financial information, including account balances. The procedure envisaged complies with the new OECD and G20 global standard on automatic exchange of information. Stepping up information exchange will enable the tax authorities to better tackle fraudsters, at the same time acting as a deterrent for those who are tempted to hide income and assets abroad. The EU signed similar agreements in 2015 with Switzerland (IP/15/5043), San Marino (IP/15/6275), Liechtenstein (IP/15/5929) and, this year, with Andorra (IP/16/288).
For more information see: http://ec.europa.eu/taxation_customs/taxation/personal_tax/savings_tax/revised_directive/index_en.htm – IP/16/381 – Press contacts: Vanessa Mock (+32 2 295 61 94) – Patrick McCullough (+32 229 87183) – General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email
(Source: http://europa.eu/rapid/press-release_IP-16-381_en.htm)