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US and Argentina Sign Landmark Tax Information Exchange Agreement

Washington D.C./Buenos Aires - In a major step towards increasing tax transparency, the United States and Argentina have signed an agreement aimed at exchanging financial information between the two countries.

The Agreement

The agreement requires Argentine financial institutions to report annually to the Argentine Competent Authority certain information about US Reportable Accounts held by Argentine residents. Similarly, US financial institutions will be required to report similar information about Argentine Reportable Accounts held by US residents.

According to the agreement, Argentine financial institutions must provide information including:

  • The name, address, and tax identification number of account holders
  • Account numbers and gross amounts of interest, dividends, and other income paid or credited to these accounts

In return, US financial institutions will be required to report similar information about Argentine Reportable Accounts held by US residents. The agreement also provides for automatic exchange of this information between the two countries on an annual basis.

Key Provisions

  • Argentine financial institutions must report annually to the Argentine Competent Authority certain information about US Reportable Accounts held by Argentine residents.
  • US financial institutions must report similar information about Argentine Reportable Accounts held by US residents.
  • The agreement provides for automatic exchange of this information between the two countries on an annual basis.
  • Information exchanged will be subject to confidentiality and other protections provided for in the Tax Information Exchange Agreement (TIEA).
  • The Competent Authorities of both countries must enter into an agreement or arrangement to establish procedures for the automatic exchange of information.

Impact

The agreement is expected to have a significant impact on tax compliance in both countries. It will help prevent tax evasion and ensure that individuals and businesses are paying their fair share of taxes.

“It’s a major step forward for tax transparency and cooperation between our two countries,” said [name], Argentine official. “We look forward to working together to implement this agreement and promote economic growth and development.”

The agreement is seen as a model for other countries to follow, and it is expected to pave the way for future agreements on tax information exchange.

Timeline

  • The agreement will take effect once it has been ratified by both countries.
  • Ratification is expected to happen in the coming months.
  • The first automatic exchange of information under the agreement is expected to occur in [year].