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Mexico applies to be first non-EU country in new international tax agreement

Tuesday, 18 June, 2013

The Mexican finance ministry has submitted an application to become the first non-European member nation of a project to develop a new multilateral tax information exchange program following the model of the US’s Foreign Account Tax Compliance Act (FATCA).

The Secretariat of Finance and Public Credit (Secretaría de Hacienda y Crédito Público, SHCP) has applied to be part of the development of the new international system – currently being developed by the United Kingdom, France, Germany, Italy and Spain – as part of its commitment to drive down tax evasion by its nationals.

SHCP Executive Secretary, Luis Videgaray Caso, said in a statement that Mexico’s potential participation in the scheme would serve to help “ensure the proper fulfillment of taxpayers’ obligations and improve our country’s tax revenues.”

Caso added that the Mexican network of international tax treaties is already the widest in Latin America, following the “decisive action it has taken in recent years to combat tax evasion and avoidance.” He said that Mexico exchanges tax information with foreign authorities at the highest international standards.

The SHCP statement said that they expect Mexico’s application to be welcomed by the five countries already involved, who launched the pilot development in April this year.

FATCA was signed into US law by President Obama in 2010 and is aimed at clamping down on American nationals who use foreign bank accounts, trusts and other overseas financial instruments to evade US taxes. The law applies to Americans living in the US who hold foreign accounts, as well as to the seven million American expatriates around the world, most of whom hold at least one bank account in the country where they live.

Sources