Expanding cooperation on tax matters between the European Union and Liechtenstein

18.06.2013

According to the statement, published on the official web-site of the Liechtenstein government, minister of finance and at the same time prime-minister of Liechtenstein, Adrian Hasler, has held a first round of negotiations with the commissioner on taxation of European Union, Algirdas Šemeta. The topic of those negotiations is expanding the jurisdiction of Savings Tax Directive.

As a prime-minister mentioned, Liechtenstein, since 2009, started to develop and realize system of exchanging of tax information. However, in light of the latest worldwide trends of developing cooperation in sphere of extending exchanging of tax information, Liechtenstein authorities wants to keep moving that way and continue negotiations with European Union about developing partnership in questions about taxation.

First, Liechtenstein and Germany widened the scope of its cooperation for the exchange of tax information in 2010, when they ratified a bilateral agreement on the exchange of tax information. The agreement provides exchange of information upon request of the competent authorities in accordance with the standards of the Organization for Economic Cooperation and Development.

Based on:

www.regierung.li

Expert’s opinion

Definitely, the Member States and EU citizens have hard life right now. Agreements about exchanging of tax information signed by many countries. Germany, France, Italy and Spain – are the brightest examples of countries, which controls every step of their citizens. Now this small country, Liechtenstein, becomes the same country.

As we can suggest, government is deliberately taking such decisions by conducting agreements about exchanging of tax information to avoid pressure and high-profile scandals that have been with the Swiss banks. All in all, banking secrecy in Liechtenstein at a high level, and the banking sector itself is wide and highly developed.

However, our citizens have no reason to worry. Even if such an agreement about the exchange of tax information would be concluded, it does not mean the automatic transfer of data and information about the beneficial ownership. This is a complex and lengthy process, when the banks answers very carefully and only for those questions, which are asked

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)