The European Union and Andorra today signed a new tax transparency agreement that is intended to address situations when EU citizens attempt to hide undeclared income in financial institutions in Andorra.
According to an EC release, Andorra and EU Member States beginning in 2018 will automatically exchange information on the financial accounts of one another's residents. Under the new agreement, EU Member States will receive the names, addresses, tax identification numbers, and dates of birth of their residents with accounts in Andorra, as well as other financial and account balance information. This information exchange is in line with the EU's work to increase tax transparency and address tax avoidance and evasion as well as the OECD/G20 global standard for the automatic exchange of information. The EU previously signed similar agreements last year with Switzerland, Liechtenstein, and San Marion, and negotiations are being finalized with Monaco.
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