News

According to the Declaration which the Liechtenstein Government has published on 12 March 2009, Liechtenstein commits to and will implement global standards of transparency and exchange of information as developed by the OECD and will advance its participation in international efforts, in order to address the global issue of tax fraud and tax evasion as well as double taxation. In this process, Liechtenstein will emphasize its responsibilities to address both the tax claims of other jurisdictions and the trust of its clients.

By Dr. Klaus Tschütscher, Prime Minister of Liechtenstein

Liechtenstein is located in the heart of Europe and has always had a diversified economy with a strong industrial sector and a financial sector that has developed well and that has helped to diversify Liechtenstein.s economy. Liechtenstein is a Member State of the European Economic Area and also takes part in the highly regulated European single market for financial services. Liechtenstein and its internationally integrated financial centre have a strong desire to continue to be recognised and accepted within the global community as a leading location for investment and wealth management according to ist high standards of regulation and its high quality of services.

Liechtenstein has undertaken numerous initiatives to combat illicit activities and has legislation and an administrative practice that have been evaluated positively by the FATF, the IMF, and others. Liechtenstein has ratified and implemented an agreement with the EU on the taxation of savings. Recently, it has concluded a tax agreement with the United States of America, following globally accepted OECD standards. Currently, it is in negotiations with the EU in relation to an anti-fraud agreement and is in discussions with certain OECD- and EU-Member States regarding closer cooperation in tax matters.

Due to this integration, Liechtenstein is fully aware of the challenges the current crisis poses to countries worldwide and wishes to support the efforts of the global community designed to stabilize the world economy and the financial system. As the crisis itself is global, solutions can only be found on a global level. For Liechtenstein, being a small country that is internationally integrated, the necessity of cooperation and joint action in the current situation is evident.

Liechtenstein is committed to act as a responsible member of the global community and has expressed its willingness to further advance its cooperation in tax matters by announcing ist commitment to the OECD standards of transparency and exchange of information on 12 March 2009. Liechtenstein has indicated its readiness to enter into bilateral agreements that provide also for an effective exchange of information in tax matters and intends to have a network of such arrangements in place as soon as reasonably possible in order to address the global issue of tax fraud and tax evasion as well as double taxation.

However, Liechtenstein believes that there is more we can do to address the needs of governments to ensure that their residents and, where appropriate, citizens meet their taxpaying obligations. Having the legitimate needs of its clients and its industrial sector in mind, Liechtenstein is therefore prepared to negotiate bilateral tax agreements that may go beyond OECD standards and hopes to be given the opportunity to share its views as to how Liechtenstein may help countries to address their objectives more effectively. In and around those agreements, Liechtenstein hopes to find comprehensive solutions to protect the legitimate tax claims of other jurisdictions and establish joint procedures designed to help investors, if necessary, to regularise any former, ongoing, and future tax compliance obligations in their respective countries of residence.
In order to ensure a transition to a way of cooperation that allows for the protection and
maintenance of a taxable asset base, we will seek clear and detailed guidelines and
technical assistance from our treaty partners with regard to the individual application of tax
laws in order to inform taxpayers and Liechtenstein.s financial service providers about their
obligations and to provide legal certainty to clients. Thus, the Government.s objective is to
strive for a balance between foreign tax claims and the legitimate needs of investors in
order to encourage the financial centre.s role as a tax-compliant destination and to
strengthen its transparency and accountability.
We believe that this approach will not only help develop Liechtenstein.s role as a taxcompliant
international financial centre but will lead to sustainable tax revenues for partner
countries from assets that would otherwise remain outside their jurisdictions.
As with other financial centres, Liechtenstein will continue to protect the legitimate privacy
rights of its clients from around the world. To this end, the Government is ensuring that
Liechtenstein maintains solid and modern bank secrecy laws, considering the growing
threat of data abuse in an increasingly digitalised world. It is therefore our responsibility to
look for new ways of balancing the required sharing of information between governments
and states as well as our democratic duty to protect every citizen.s legitimate right for
privacy.
During the past months, Liechtenstein has greatly benefited from discussions with certain
Governments of EU-Member States as well as government associations to better
understand the needs of the global community. These discussions have been most valuable
in developing our March 12th Declaration. Liechtenstein appreciates the guidance it has
received and is looking forward to participating in further discussions on transparency and
exchange of information. I hope that many countries will take up negotiations and that we,
as a result, will be able to conclude and implement bilateral agreements quickly and move
forward on this issue.

Quelle: Portal of the Principality of Liechtenstein, Press Releases
Link: http://www.liechtenstein.li