U.S., Bahamas in Pact to Deter Evaders
Treasury Secretary Paul H. O’Neill signed an information-sharing agreement with the Bahamas designed to help U.S. authorities crack down on the use of offshore tax havens to hide illegal money.
The agreement with the Caribbean nation, long considered a haven for tax evaders, marks the Bush administration’s latest effort to open up financial institutions to greater scrutiny to prevent tax evasion.
The administration has signed information-sharing agreements with Antigua, Barbuda and the Cayman Islands, countries long considered tax havens.
The agreement is designed to allow the Internal Revenue Service to pierce the secrecy of accounts at financial institutions in the Bahamas, paving the way for audits that could uncover tax evasion or money-laundering activities.
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