Tax transparency enters Andorra, but for how long?
Healy Consultants Group PLC
10 March, 2016
Andorra, as some other small EU states, has a record of shady financial transactions that are hard to track for concerned institutions. Tax transparency regulators aim to unify laws and due diligence requirements across the EU, and Andorra is no exception.
To comply with these regulation needs, both EU and Andorra have managed to sign a new 2016 tax transparency treaty that will make it harder for EU citizens to stash non-disclosed income in financial institutions in Andorra.
The EU is unlikely to back down on its fight to increase tax transparency and tackle tax avoidance and evasion. Furthermore, this deal is fully compatible with the new OECD/G20 global standard for the automatic exchange of information.
And while this will not be an easy process to organize, the target start period for implementation will be 2018. How will this system operate? It is simple, EU states will be able to receive the names, addresses, tax identification numbers, and dates of birth of their residents with accounts in Andorran banks. Balance disclosures will also be made public.
And while most readers might think this will curb business growth in Andorra, Healy Consultants expects that an improved reputation will bring a breath of fresh air to the states economy, leading to increased FDI globally.
« Go Back to Blogs