EU Parliament Endorses Deal to Crack Down on Tax Evasion in San Marino

In an effort to combat tax fraud and evasion, the European Union’s Parliament has endorsed an agreement that will make it more difficult for EU citizens to hide cash from the tax authorities in bank accounts held in San Marino.

Automatic Exchange of Information

The deal, signed by the EU and San Marino in December 2016, will see the automatic exchange of information on the bank accounts of each other’s residents starting next year. This means that both sides will share detailed information on:

• Account balances
• Income such as interest and dividends
• Proceeds from the sale of financial assets

Stricter Measures and Global Standard

Under the terms of the agreement, San Marino will implement stricter measures equivalent to those already in place within the EU since March 2014. The deal also complies with the global standard on automatic exchange of financial account information promoted by the Organisation for Economic Co-operation and Development (OECD).

Benefits of the Agreement

The agreement will enable tax administrations in EU member states and San Marino to:

• Correctly identify taxpayers
• Administer and enforce their tax laws in cross-border situations
• Assess the likelihood of tax evasion
• Avoid unnecessary further investigations

Effective Date

The deal is set to come into effect on January 1, 2017, mirroring similar agreements concluded with Switzerland and Liechtenstein.

Voting Results

The resolution was passed by a significant majority, with:

• 607 votes in favor
• 22 votes against
• 18 abstentions