EU and Andorra sign automatic tax information exchange agreement
The previous agreement, signed in 2004, ensured that Andorra applied measures equivalent to those in the EU directive on the taxation of savings income. The directive was repealed in November 2015, to avoid overlap with a separate directive on the exchange of tax information on request.
The new agreement aims to limit the opportunities for taxpayers to avoid being reported to the tax authorities by shifting assets.
The parties will automatically receive the names, addresses, tax identification numbers, and dates of birth of their residents with accounts in Andorra or an EU member state, along with other financial and account balance information.
The European Commission said that the agreement will allow tax authorities to identify correctly 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. ■