Liechtenstein and UK sign Tax Treaty
The government of Liechtenstein has agreed a tax deal with UK. This treaty will help London uncover untaxed fortunes hidden away in Liechtenstein by British taxpayers.
According to Britain’s taxman, there are up to 5 000 British investors with an estimated GBP 2-3 billion in secret Liechtenstein accounts.
Dave Hartnett, a permanent secretary at Revenue and Customs, said that those who have been evading Britain’s tax on assets held in Liechtenstein banks must now settle with us. In accordance with the agreement, from September 1, 2009 to March 31, 2015 Britons will declare their assets in Liechtenstein and they will receive favorable treatment in paying the taxes they owe.
On August 11, Liechtenstein’s government said in a statement that the tax treaty provided special conditions between 2010 and 2015 in order to encourage clients with British tax arrears to declare themselves. The new agreemtn applies not only to existing clients but also to new clients. Klaus Tschuetscher, the prime minister of Liechtenstein, said that with this tax deal a stable and reliable regulatory framework is created and the client now has the possibility to make use of an attractive option.
It should be noted that lately Liechtenstein has come under heavy pressure as regards revealing which foreign nationals have bank accounts and anonymous trusts in the jurisdiction. Earlier this year the government of Liechtenstein agreed to cooperate with other countries in tax matters. Since then, it has signed tax deals with the US and Germany.
It also is worth reminding that the OECD removed Liechtenstein from its blacklist earlier this year.