Liechtenstein and Britain sign a tax pact
01.10.2009
Britain on Tuesday signed a tax cooperation agreement with Liechtenstein that would allow British holders of assets in secret accounts to declare their holdings voluntarily in exchange for a reduced penalty fee or face the closure of their accounts.
Those who fail to make a full disclosure by the end of the program will have to move their accounts out of Liechtenstein and pay all the taxes evaded as well as a like amount as a penalty, in addition to facing possible legal action, the government said.
Klaus Tschutscher, prime minister of Liechtenstein, called the agreement “one that ensures legal certainty and helps bridging the individual interests involved.” “We are creating a stable and reliable regulatory framework and for the client the possibility to make use of an attractive option,” Mr. Tschutscher said in a statement.
Liechtenstein (9) -- Analyses -- 2009
More about the tax haven Liechtenstein
01.10.2009
For years, Liechtenstein’s secretive banking laws offered individuals a place to store their wealth out of sight and reach of their own tax authorities. The country defended its laws even as Germany opened a tax-evasion inquiry last year aimed at secret Liechtenstein accounts.
Bowing to pressure from the Organization for Economic Cooperation and Development, which maintains a blacklist of uncooperative tax havens, Liechtenstein has increased cooperation and, with Andorra and Monaco, was removed from the blacklist in May.
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