Luxembourg and Switzerland agree to OECD guidelines

Switzerland and Luxembourg have agreed to co-operate with OECD standards on the exchange of information with other countries on individual tax matters.

Both countries have notoriously strict banking secrecy laws which prevent the disclosure of information to foreign authorities conducting investigations into the affairs of individuals.

The agreement will not affect taxpayers who reside in either of these countries, rather they allow overseas authorities to gain information on matters concerning their citizens.

Switzerland and Luxembourg will offer information and assistance to overseas authorities by signing double taxation treaties with other OECD member states. These treaties need to be negotiated one by one, and it could take years before they are all in place.

Further reading:

Years for Swiss secrecy legislation to materialise

Liechtenstein eases bank secrecy rules

HMRC launches Barclays tax probe