Argentina Signs TIEA With Andorra

by Mike Godfrey, Tax-News.com, Washington

29 October 2009

Argentina and the Principality of Andorra have signed a tax information exchange accord to prevent and combat tax fraud, evasion and avoidance.

Through this agreement, signed by Argentina's Dr Ricardo Echegaray, head of the Federal Administration of Public Revenue (AFIP) and Espot Xavier Miró, Andorra's minister for foreign affairs and international relations, both sides undertake to assist each other with information relevant to the administration and enforcement of national tax laws in accordance with OECD guidelines.

The accord provides for the exchange of information on request, and includes information held by banks, other financial institutions, and any person acting as an agent or in a fiduciary capacity, and information associated with ownership of companies. It also foresees the possibility of overseas audits. Confidentiality will be respected.

In September a tax amnesty scheme aimed at enticing back to Argentina undeclared assets, and regularizing the black economy ended after bringing in ARS33bn (USD8.3bn) in extra revenue, beyond expectations. Argentines are still thought to have over USD100bn in funds invested privately overseas. The USA, where it is thought the majority of Argentina's undeclared overseas bank accounts are located, signed a double taxation agreement with Argentina in 1981 which was never been ratified.

Argentina is the first Latin American country to sign such an agreement with Andorra. Last week Argentina signed a similar agreement with the Principality of Monaco and further accords of this kind have been agreed in principle with the Cayman Islands, Jersey, Bahamas, Costa Rica, the Netherlands Antilles, Aruba, Barbados, and others are likely to follow.

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