Monday, September 19, 2011
In a recently published report, summarising the legal and regulatory framework for transparency and exchange of information for tax purposes in Liechtenstein, the OECD's Global Forum underlines the principalityís commitment in the area of taxation, explicitly praising progress in implementing international standards on mutual assistance.
Having finally completed phase one of the review process, in which it assessed the quality of Liechtensteinís legal and regulatory framework for the exchange of information, the Global Forum states in its report that the country fulfils most of the important legal requirements and criteria, either completely or in part.
Positively assessing Liechtensteinís mutual assistance law, and in particular the availability of banking information for all account holders, the Global Forum also praises the principalityís procedures for providing mutual assistance, noting that the provisions serve to guarantee not only the confidentiality, but also the rights and security of individuals.
Underlining the significant progress made by Liechtenstein up until now in negotiating a network of tax agreements with numerous key partners, following its declaration of March 2009, the Global Forum notes that the concluded agreements conform in the key areas to the agreed international standards.
Concluding its review, however, the Global Forum laments the countryís accounting rules, pointing out that the provisions do not fully satisfy international requirements for all legal forms, notably for trusts, trust companies and institutions.
Commenting on the Global Forumís positive report, Liechtensteinís Prime Minister Klaus TschŁtscher emphasized that the review now gives the principality further momentum for its initiated reforms, and motivation to continue consistently in its efforts to become a stable and transparent financial and economic location.
According to the Liechtenstein administration, the government is determined to give high priority to the further implementation of the OECD standards, to which it committed itself in its declaration of March 12, 2009, and to extend its network of double taxation agreements.
Concluding his statement, Prime Minister TschŁtscher underlined that the government now aims to examine the Global Forumís recommendations and to take any necessary implementation measures required.
Phase two of the peer review process, in which the effectiveness of the exchange of information is monitored, is due to take place at the end of 2012.