Mutual Legal Assistance Treaty
Encyclopedia
A mutual legal assistance treaty is an agreement
between two countries for the purpose of gathering and exchanging information
in an effort to enforce public law
s or criminal law
s. First ones are very important in tax
matters, in particular as part of international double taxation agreements
wherein the parties agree to deliver informations for tax purposes.
This assistance may take the form of examining and identifying people, places and things, custodial transfers, and providing assistance with the immobilization of the instruments of criminal activity. With regards to the latter, MLATs between the United States
and Caribbean
nations do not cover U.S. tax evasion
, and are therefore ineffective when applied to Caribbean countries, which usually act as offshore "tax haven
s."
Assistance may be denied by either country (according to agreement details) for political or security reasons, or if the criminal offence in question is not equally punishable in both countries. Some treaties may encourage assistance with legal aid for nationals in other countries.
Treaty
A treaty is an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations. A treaty may also be known as an agreement, protocol, covenant, convention or exchange of letters, among other terms...
between two countries for the purpose of gathering and exchanging information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
in an effort to enforce public law
Public law
Public law is a theory of law governing the relationship between individuals and the state. Under this theory, constitutional law, administrative law and criminal law are sub-divisions of public law...
s or criminal law
Criminal law
Criminal law, is the body of law that relates to crime. It might be defined as the body of rules that defines conduct that is not allowed because it is held to threaten, harm or endanger the safety and welfare of people, and that sets out the punishment to be imposed on people who do not obey...
s. First ones are very important in tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
matters, in particular as part of international double taxation agreements
Tax treaty
Many countries have agreed with other countries in treaties to mitigate the effects of double taxation . Tax treaties may cover income taxes, inheritance taxes, value added taxes, or other taxes...
wherein the parties agree to deliver informations for tax purposes.
This assistance may take the form of examining and identifying people, places and things, custodial transfers, and providing assistance with the immobilization of the instruments of criminal activity. With regards to the latter, MLATs between the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
nations do not cover U.S. tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
, and are therefore ineffective when applied to Caribbean countries, which usually act as offshore "tax haven
Tax haven
A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....
s."
Assistance may be denied by either country (according to agreement details) for political or security reasons, or if the criminal offence in question is not equally punishable in both countries. Some treaties may encourage assistance with legal aid for nationals in other countries.
External links
- US Government List of the countries who are signatories
- MLA Treaty (full text) drafted between the U.S. and Japan in 2003
- Extensive analysis and documentation of various American MLA Treaties