May 21, 2009
TG-143

United States, Luxembourg Bolster Tax Information Exchange

Washington--As part of the Treasury Department's aggressive efforts to enforce U.S. tax laws and create a fairer tax Code, the U.S. Department of the Treasury today announced that United States Ambassador to Luxembourg Ann Wagner and Luxembourger Finance Minister Luc Frieden signed a protocol updating the current income tax treaty between the United States and Luxembourg to allow for more robust tax information exchange between the two countries.

"This treaty is a critical step forward in our efforts to level the playing field for U.S. taxpayers," said Treasury Secretary Tim Geithner. "Greater information exchange among nations is a key part of enforcing the tax Code fairly so that everyone pays their fair share."

In a ceremony held today in Luxembourg City, the two officials signed a protocol that would amend the existing U.S.-Luxembourg income tax treaty so that it incorporates the OECD tax treaty standard on exchange of information for tax purposes.  As a result of the change, the Treasury Department will be able to obtain the information that it needs from Luxembourg to enforce U.S. tax laws.  Under the protocol, the United States will be able to seek information from Luxembourg on all types of federal taxes, and in both civil and criminal matters, regarding all taxable years beginning on or after 2009.

In recent weeks, the Administration has demonstrated its commitment to closing the tax gap. At the G-20 Leaders' Summit, the U.S. led efforts to ensure that all countries adhere to international standards for exchange of tax information. In the FY 2010 Budget, the Administration delivered a detailed reform agenda to reduce the amount of taxes lost through unintended loopholes and the illegal use of hidden accounts by well-off individuals. The Treasury Department also recently concluded Gibraltar's first-ever tax information exchange agreement.

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