Monday, June 13, 2011
The UK has begun the legislative procedure for the ratification of its tax information exchange agreement with San Marino, paving the way for its application.
The International Tax Enforcement (San Marino) Order 2011 was issued on June 6, and provides for the approval of the TIEA. Signed on February 16, 2010, it covers all taxes in both territories and follows internationally accepted standards.
The treaty provides for the exchange of information relevant to the administration and enforcement of domestic tax laws, and to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims and the investigation or prosecution of tax matters.
The TIEA also permits the exchange of information held by banks and other financial institutions, and information regarding the ownership of partnerships, trusts, and foundations.
A mutual agreement procedure also forms part of the TIEA, designed to resolve any disputes arising from its interpretation or implementation.
Once the TIEA enters into force, it will have immediate effect in criminal matters, and in all other matters, from taxable periods beginning on or after January 1 of the following year.