Global Forum Praises Liechtenstein's Progress On Tax Compliance
Wednesday, November 14, 2012
The Global Forum’s 2012 supplementary report has praised the measures implemented
by the Liechtenstein government since publication of the country report last year,
aimed at ensuring that the Principality is a stable and transparent financial
and economic location.
The Organization for Economic Cooperation and Development (OECD) Global Forum
on transparency and information exchange in tax matters examines by means of
Peer Reviews the adherence by member states to internationally
accepted mutual assistance standards. This is achieved within the framework
of two separate phases. The first phase considers whether or not national laws
and international agreements are in line with specific criteria, while the second
phase examines the effectiveness of information exchange in practice.
In its September 2011 country report on Liechtenstein, the Global Forum concluded
that the Principality could enter the second phase of the Peer Review process
provided that the government implements the key recommendations, namely that
measures are taken to ensure compliance with international accounting standards
and that steps are taken to increase the availability of ownership information
for all relevant legal forms, found to be deficient in the phase one review.
According to the Liechtenstein government, Liechtenstein has, since publication
of the 2011 country report, implemented all of the required initiatives.
To ensure successful completion of the phase one process, the government introduced
standard accountancy provisions for all companies and legal entities, in particular
for trusts, trust companies and institutions. Due to be adopted by lawmakers
by the end of the year, the government also drafted a bill pertaining to a revision
of bearer shares to guarantee compliance with international standards. The government
also plans to further extend the country’s tax agreement network (double
tax and tax information exchange agreements) and to ensure that nearly all concluded
accords enter into force as swiftly as possible.
Commenting on the Global Forum’s positive 2012 supplementary report,
Liechtenstein’s Prime Minister Klaus Tschütscher emphasized that
the review now gives the Principality further momentum for its initiated reforms,
and motivation to continue in its efforts to become a stable and
transparent financial and economic location.