SIGNING OF THE AGREEMENT BETWEEN THE HOLY SEE,
ACTING ALSO IN THE NAME AND ON BEHALF OF THE VATICAN CITY STATE,
AND THE UNITED STATES OF AMERICA
TO IMPROVE INTERNATIONAL TAX COMPLIANCE AND TO IMPLEMENT
THE UNITED STATES' FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)

AMBASSADOR HACKETT'S REMARKS
AT THE FATCA IGA SIGNING CEREMONY

10 June 2015

I am pleased to be here for the historic signing of the agreement with the Holy See implementing the Foreign Account Tax Compliance Act, or FATCA. We welcome the Holy See’s commitment to intensifying our cooperation to promote global financial transparency through improving international tax compliance.

Today’s signing marks a significant step in both the United States’ and Holy See’s efforts to work collaboratively toward a global standard to combat offshore tax evasion. It also aligns with our mutual commitment to work together to detect, deter, and discourage offshore tax abuses through increased transparency and enhanced reporting. In partnership with the Holy See, we are working towards building a stronger, more stable, and more accountable global financial system.

Offshore tax evasion is a pressing concern. Of all the measures that could be taken to eliminate world poverty, stopping tax evasion may be one of the most effective options. Every year, tax evasion deprives governments of all sizes of much-needed resources to fund public services and investments. As President Obama said, “The idea that a child may never be able to escape poverty because she lacks a decent education or health care, or a community that views her future as their own, that should offend all of us and it should compel us to action.”

Because access to information from other countries and jurisdictions is critically important to the full and fair enforcement of U.S. domestic tax laws, information exchange is a top priority for the United States. As such, we have been a leader in the development of new international standards for greater transparency through full exchange of tax information.

This FATCA agreement is yet another example of the close and collaborative relation between the Holy See and the United States on global issues.