The Principality of Monaco, a known tax haven, delighted its larger European neighbors when it announced its commitment to fight tax dodgers after becoming the 84th jurisdiction to participate in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
Angel Gurría, Seceretary-General of the OECD (Organiszation for Economic Co-operation and Development), said:
“Monaco has taken many positive steps towards improving transparency in recent years. Today’s signing is an important new signal that Monaco is seriously committed to the international fight against offshore tax avoidance and evasion.”
Mr. Gurría spoke after the signing ceremony at OECD headquarters with José Badia, Monaco’s Minister for Foreign Affairs and Cooperation.
José Badia signing the Convention.
The automatic exchange of information is now becoming the new international standard, Mr Gurría noted, as the number of signatories to the Convention increases.
The Multilateral Convention provides all types of mutual assistance, including assistance in tax collection, simultaneous tax examinations, tax examinations abroad, spontaneous exchange, and exchange on request, “while protecting taxpayers’ rights,” the OECD said.
The OECD wrote:
“The Convention will be a key agenda item during the annual meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes on 28-29 October in Berlin, Germany. Representatives of more than 40 countries and jurisdictions are expected to sign a Multilateral Competent Authority Agreement on Financial Account information, which will signal their commitment to launching automatic exchange in the near future.”
Europe’s larger economies have placed pressure on Switzerland, Monaco and other tax havens to be more forthcoming in their efforts to track down tax dodgers.