FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department is pleased to confirm that representatives of the government of the United States and the government of Panama have begun discussion of a tax information exchange agreement. It is more important than ever to ensure that financial institutions are not used to facilitate illegal activity of any kind.

Last summer, Treasury Secretary Paul O'Neill made a commitment to expand our tax information exchange agreement network to help us to enforce U.S. tax laws. The United States has tax information exchange relationships with over 70 countries through an extensive network of agreements and tax treaties. The recently signed tax information exchange agreements with the Cayman Islands and Antigua and Barbuda are valuable additions to that network. Our information exchange relationships are important to the full and fair enforcement of the U.S. tax laws by allowing for critical information to be obtained upon specific request in cases where there is reason to believe that a taxpayer has not paid taxes that are due and owing.