EU, Monaco Initial New Tax Transparency Agreement

by Ulrika Lomas, Tax-News.com, Brussels

23 February 2016

The European Union and Monaco have agreed to automatically exchange information on their residents' financial accounts from 2018.

Under the agreement, initialed on February 22, Monaco and EU member states will begin collecting information from January 1, 2017. From 2018, they will automatically exchange information on the names, addresses, tax identification numbers and date of birth of residents with accounts in the other jurisdiction, along with other financial information such as account balances.

The formal signature of the agreement will take place once the European Council has given its authorization. The European Commission said the procedure set out in the agreement complies with the new standard on the automatic exchange of information developed by the Organisation for Economic Cooperation and Development (OECD) and G20. It added that increasing the flow of information will enable tax authorities to better tackle fraud and will serve as a deterrent for those considering hiding income and assets abroad.

The EU has already signed similar agreements with Switzerland, San Marino, Liechtenstein, and Andorra.

EU Tax Commissioner Pierre Moscovici said: "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."

Monaco's Finance and Economy Minister, Jean Castellini, added: "The initialing 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."