Ecuador and the United States agree to share tax information | Economy | News

The Internal Revenue Service (SRI) and the US tax administration, the Internal Revenue Service (IRS) signed an information sharing agreement for tax purposes on Wednesday.

This agreement was signed by SRI Managing Director Marisol Andrade, and US Ambassador to Ecuador, Michael J.

“This tool will facilitate and enable the effective exchange of tax information that will be relevant to tax identification, settlement and collection, thus enhancing financial transparency and combating evasion,” the SRI statement says.

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Andrade said that these exchanges may be automatic or automatic, and that the agreement opens the possibility of cooperative audits between the two departments, with the prior written consent of the parties concerned.

He pointed out that “the information exchange agreement between Ecuador and the United States opens the possibility of conducting cooperative audits between the two tax administrations in order to enhance financial transparency. It also allows for better collection and contributes to international cooperation in combating tax evasion.”

According to SRI, the agreement between Ecuador and the United States guarantees the confidentiality of mutual information.

“This tax information exchange agreement promotes greater cooperation between our two countries and affirms our common values ​​such as transparency and the rule of law,” said Fitzpatrick.

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Meanwhile, since mid-2018, SRI has taken the initial approach with the United States Tax Administration (IRS) in order to promote the commencement of negotiations for a tax information exchange agreement between Ecuador and the United States.

As a result, SRI submitted the documents to start negotiations that took place during the last quarter of 2020 that culminated in the approval of the final text at the beginning of this year. (I)