US, Monaco Sign Tax Agreement

[John Young]

September 8, 2009
TG-278

United States, Monaco Sign Tax Information Exchange Agreement

WASHINGTON  The U.S. Department of the Treasury today announced
that the United States and Monaco have signed an agreement to allow for
the exchange of information on tax matters between the two countries.
The agreement was signed by Deputy Secretary Neal Wolin and Minister
Franck Biancheri in Washington.

"This Administration is wholeheartedly committed to combating offshore
tax evasion," said Deputy Secretary Wolin.  "We are working with countries
like Monaco to ensure that the IRS has access to the information that it
needs to enforce U.S. tax law.  Today's agreement serves as an example
for other financial centers around the world and reflects our continued
efforts to end the use of offshore accounts as a tool for tax evasion."

The Tax Information Exchange Agreement (TIEA) with Monaco will
provide the United States with access to information it needs to enforce
U.S. tax laws, including information related to bank accounts in Monaco.
The TIEA will permit the United States to seek information from Monaco,
beginning in 2010, on all types of taxes in both civil and criminal matters
regarding 2009 and later tax years.  As is customary with such agreements,
only specific tax authorities will be 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.

In recent months, the Administration has demonstrated its commitment
to closing the tax gap.  At the G-20 Leaders' Summit in London, the U.S.
strongly supported efforts to ensure that all countries adhere to
international standards for exchange of tax information.  In the FY
2010 Budget, the Administration delivered a detailed reform agenda
to reduce the amount of taxes lost through unintended loopholes and
the illegal use of hidden accounts by well-off individuals.  The Treasury
Department has concluded Gibraltar's first-ever tax information
exchange agreement and has also concluded an agreement with
  Luxembourg to provide for greater exchange of tax information. In
June, the Treasury Department announced an agreement with
Switzerland to amend the U.S.-Switzerland income tax treaty to
provide for increased tax information exchange.

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The agreement:

http://cryptome.org/us-ma-tiea.pdf