Liechtenstein eases bank secrecy rules

Liechtenstein has become the latest tax haven to relax its bank secrecy rules and share tax data with tax authorities.

The tiny European principality has signed up to international standards to combat tax evasion and fraud, set by the set by the Organisation for Economic Co-operation and Development.

The move by the tax haven came ahead of an announcement today by Switzerland, which is expected to announce concessions on bank secrecy in response to mounting international pressure on financial centres that have the strictest forms of client confidentiality, the Financial Times reported.

Governments are discussing new measures to crackdown on tax havens who are accused of costing tax authorities tens of billions of pounds in lost tax revenues.

World leaders are expected to announce new restrictions on tax havens next month at the G20 summit in London.

In recent months The Isle of Man has signed a tax information exchange agreement with Germany and the Cayman Islands has announced that it will sign tax information exchange agreements with seven Nordic economies.

OECD Secretary-General Angel Gurría yesterday welcomed moves by financial centres to become more transparent and exchange more information on tax.

Gurría said: 'Ending the abuse of banking secrecy arrangements that facilitate tax evasion is part of a broader drive to clean up one of the more controversial sides of a globalised economy.'

In recent months The Isle of Man has signed a tax information exchange agreement with Germany and the Cayman Islands has announced that it will sign tax information exchange agreements with seven Nordic economies.

Further reading:

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