fifteen items Agreement on the Exchange of Information on Tax Matters between the United States and Ecuador Which was ratified a few days ago in the National Assembly by a majority of 117 votes.
This instrument has a favorable opinion of the Constitutional Court (CC), which has determined that its content does not violate constitutional rights.
It will become effective 30 days after the Ecuadorean government notifies the United States government in writing that it has completed its necessary internal procedures. It shall be terminated until terminated by one of the parties by written notice to the other party.
The main points of the agreement are the following:
1. The Parties will assist each other by exchanging information that may be relevant to the identification, settlement and collection of taxes, the collection and enforcement of tax claims, or the investigation and prosecution of tax matters.
two. The Convention applies, in the case of the United States, to all federal taxes; i.e. those administered by the Treasury; And in the case of Ecuador, all those operated by the Internal Revenue Service (SRI). As well as on taxes approved after the entry into force of this Agreement and which are similar.
3. Information will be exchanged at the request of one of the parties; If the information held by the competent authority of one of them is insufficient to comply with the request, it must resort to “all relevant measures” to obtain it.
The parties also agree to authorize – to the extent permitted by local legislation – to take certificates with or without oath; To display documents and accounting books; Conducting interrogations in the presence of lawyers; Securing and making copies of records; Submit written questions to those presenting the documents, among others.
In addition, the two countries agreed that the authorities that will implement this agreement will have the authority to obtain and provide information on banks and financial institutions, the ownership of companies, trusts and foundations, as well as their shareholders, trustees and beneficiaries. members of their advice.
four. Automatic exchange of information can also be done.
5. In addition, an automatic exchange of information that one of the parties considers relevant to achieve the objective of the agreement may be carried out.
6. Tax inspections can be conducted abroad: the authorities of one party will be allowed to enter the territory of the other to conduct interviews or review documents as permitted by local law.
7. Parties will not be required to provide information they cannot obtain due to legal prohibitions, or to disclose commercial, industrial, professional or commercial secrets; or confidential communications between clients and attorneys or legal representatives.
8. The information received will be treated as confidential and may only be handed over to the person concerned and the authorities (including courts or tribunals) relevant to tax matters. However, with the prior written consent of either state, such information may be disclosed to combat terrorism and for purposes permitted in any agreement on cooperation in criminal matters between the parties.
9. The competent authorities of the Parties may share technical knowledge and develop new audit techniques; Identify and study areas of tax non-compliance.
10. When difficulties arise between the parties, the authorities will try to solve them through friendly settlements.
In a video posted on his social networks, The director of the SRI, Francisco Briones, noted that this agreement is important to strengthen the fight against tax evasion.
Neri Merigildo, President of the American-Ecuadorian Chamber of Commerce in Guayaquil, He believed that the state «sends the correct and necessary message. Ecuador is a country of peace, morals and work. The unanimous vote made it possible for the members of the Assembly to ratify the final ratification of the Tax Information Exchange Agreement between the United States and Ecuador, contributing to a more positive relationship between our two countries.”
https://t.co/oitxWwGF31“This tax information sharing agreement promotes greater cooperation between our two countries and supports our shared values of transparency and the rule of law,” said Ambassador Michael Fitzpatrick. Tweet embed
Amcam Guayaquil (@amchamgye) July 15 2022
He added that the signing of this agreement is “a milestone that strengthens bilateral relations and business with the United States, in an environment that contributes to transparency in the interest of the economic and social development of our country. The approval will allow combating evasion through cooperation in the exchange of relevant tax information between Ecuador and the United States, clarifying figures and generating income.” that contributes to the well-being of Ecuadorians.” (YO)