Costa Rica to provide financial info on US account holders in agreement against tax evasion

December 2nd, 2013 (AFP & InsideCostaRica.com) The United States has signed agreements with the Cayman Islands and Costa Rica to counter offshore tax evasion, the US Treasury Department announced Friday.

Under the agreement with the Cayman Islands, the Caymans must report tax information on US account holders to Cayman authorities, who will in turn relay the information to the US Internal Revenue Service.

The agreement with Costa Rica is a reciprocal agreement, which means that in addition to receiving information on US account holders in Costa Rica, the US will also be required to provide tax information to the Costa Rican government regarding Costa Ricans with accounts in the United States.

“Today’s announcement marks a milestone in the effort to promote global tax transparency,” said Robert Stack, Deputy Assistant Secretary for International Tax Affairs.

“These agreements underscore growing international cooperation in the effort to end tax evasion everywhere.”

“This shows Costa Rica’s willingness to be transparent [and] collaborate in the fight against tax evasion, money laundering, and legal loopholes,” said Costa Rican Finance Minister, Edgar Ayales, after ratifying the agreement last week.

“[The] signing marks a significant step forward in our efforts to work collaboratively to combat offshore tax evasion – an objective that mutually benefits both our countries,” said Gonzalo R. Gallegos, Chargé d’Affaires of the U.S. Embassy in Costa Rica, who signed on behalf of the United States.

The agreements are part of the implementation of a 2010 US law known as the U.S. Foreign Account Tax Compliance Act (FATCA) that stepped-up oversight of US accounts held in foreign jurisdictions.