In the ever tightening world of tax evasion an agreement has been signed by the Portugal’s Secretary of State for Fiscal Affairs, Paul Núncio (pictured), and the US ambassador in Lisbon, Robert Sherman.
The document governs the exchange of information between the two countries regarding accounts in all financial institutions in both countries.
The conclusion of the work to strengthen tax compliance and to implement the Foreign Account Tax Compliance Act "will contribute to the shared objective of ensuring compliance with the respective taxation laws and will prevent and combat fraud and tax evasion on a reciprocal basis," according to today’s statement, which added that the new agreement "guarantees adequate protection of citizens’data" without making clear what this entailed.
Comments
This is a step forward. But we must remember that at least 15 years ago the US tax authorities were already slamming Banco Espirito Santo for not doing even the most basic ID checks. And reminding BES every few years to make a start doing that novelty for Portuguese bankers - matching funds to individuals. Or specified businesses.
So will all this just drive the Portuguese billions siphoned out of the EU structural improvement funds further off-shore ?
We must be grateful that the IMF is still doing post programme monitoring of Portugal. That it has not, as the Portuguese Government tell us - 'gone away'.
So we keep getting reminded that the structural improvements are on hold. But must be re-invigorated when the election is over. As the IMF made clear 'whatever political party gets in power is irrelevant'.