OREANDA-NEWS. An EU deal with Monaco, which will make it harder for EU citizens to hide cash from the tax man in bank accounts there, was endorsed by Parliament in a vote on Thursday. Under the deal, the EU and Monaco will automatically exchange information on the bank accounts of each other's residents, starting in 2018 for information collected since 1 January 2017.

The EU and Monaco signed an agreement on 22 February 2016 to clamp down on tax fraud and tax evasion. The information to be exchanged includes not only income, such as interest and dividends, but also account balances and proceeds from the sale of financial assets.

The formal signature is foreseen before the summer break as soon as the Council will have authorised it.

The agreement ensures that Monaco will apply stricter measures, equivalent to those in place within the EU since March 2014. The agreement also complies with the 2014 global standard on the automatic exchange of financial account information promoted by the OECD.

Tax administrations in EU member states and in Monaco will be able to:

  • identify correctly and unequivocally the taxpayers concerned,

  • administer and enforce their tax laws in cross-border situations,

  • assess the likelihood of tax evasion being perpetrated, and

  • avoid unnecessary further investigations.

The resolution was approved by 549 votes to 16, with 23 abstentions.

Similar agreements have already been approved with Switzerland, Liechtenstein, San Marino and Andorra.