Uruguay has recently signed an agreement (the “Agreement”) to facilitate the exchange of such information. This is to the extent that the information may be foreseeably relevant for the assessment and collection of taxes, as well as for the investigation and prosecution of tax cases.
In principle, the Agreement would not allow the exchange of tax information with respect to tax periods prior to its entry into force. This is unless the request for information is performed in the framework of criminal proceedings.
In addition to the standard exchange of information at the request of the Tax Administration (whether of the US or Uruguay), the Agreement also provides for the possibility of:
(i) Conducting tax audits in the other country (understood as interviewing individuals and examining records with the consent of the individuals or entities involved).
(ii) Agreeing in the future on the conditions for transmitting information spontaneously and automatically (including banking information).
The Agreement covers not only the territory of the United States itself, but also American Samoa, Guam, Northern Mariana Islands, Puerto Rico, U.S. Virgin Islands and the territory of any other U.S. possession.
For its entry into force, both countries have yet to ratify the Agreement through their pertaining parliamentary bodies.
The above communication has been prepared just for information purposes. It cannot be construed as legal advice provided by Bergstein Abogados. Should you have any further questions, please feel free to contact Dr. Guzmán Ramirez (gramirez@bergsteinlaw.com) or Dr. Domingo Pereira (dpereira@bergsteinlaw.com).
