The United States Department of the Treasury and the Government of Gibraltar
have signed an agreement to allow for the exchange of information on tax matters
between the two countries.
The agreement was signed by US Secretary Tim Geithner and Gibraltar Chief Minister
Peter Caruana in London in advance of the G20 Summit.
President Obama's FY2010 budget calls for a robust portfolio of Internal Revenue
Service (IRS) international tax compliance initiatives. "The President's
budget makes a commitment to reduce international tax avoidance. As part of
this commitment, the Treasury Department is embarking on an ambitious effort
to deal with offshore compliance as evidenced by today's agreement with Gibraltar,"
said Treasury Secretary Geithner, adding:
"I will continue to demand transparency from countries on behalf of American
taxpayers. I look forward to Gibraltar's cooperation with the United States
and to this agreement serving as an example for other financial centers around
the world."
The Chief Minister of Gibraltar, Peter Caruana commented:
"We are delighted that our first agreement of this kind is with the United
States. Gibraltar is committed to the OECD standard and the offer of such an
agreement is open to other countries. Properly regulated exchange of information
has become increasingly important. We look forward to co-operating with the
United States under this agreement. As part of the European Union, Gibraltar
already complies with EU standards of financial regulation and exchange of information."
The Tax Information Exchange Agreement (TIEA) with Gibraltar will provide the
United States with access to information it needs to enforce US tax laws, including
information related to bank accounts in Gibraltar.
The TIEA is the first of its kind for Gibraltar and will permit the United
States to seek information from Gibraltar and vice versa on all types of taxes
in both civil and criminal matters.
As with all agreements to exchange information, only specific tax authorities
are 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.
The TIEA will allow the United States to ask for criminal tax information relating
to any taxable year and for civil tax information relating to taxable years
beginning after 2008 (assuming that the TIEA enters into force this year).
Under this agreement, Gibraltar obtains the same rights from the United
States.
LAWANDTAX-NEWS.COM
