Lichtenstein removed from grey list

Monday, 16 November 2009 16:53

The government of Liechtenstein was removed from an international ‘grey list’ of tax havens on 11 November.

The development is expected to ease pressure on the country’s financial sector, which in the past has been strongly attacked for its lax tax rules.
The removal from the grey list of the Organisation for Economic Cooperation and Development comes after Liechtenstein signed two new treaties with Belgium and the Netherlands. The deals will trigger a new tax regime in the principality aimed at boosting competitiveness.

“The removal from the so-called grey list is a milestone,” said Prime Minister Klaus Tschuetscher. “I took office to restore the reputation of our country. This is the only way we can do justice in the long term to the full potential of our businesses and service providers.”

In April, Liechtenstein was put on a grey list of states, together with countries such as Austria and Switzerland, as the OECD increased pressure on tax havens and offshore banking sectors to bring tax laws in line with international standards.

Liechtenstein has since signed ‘double-tax treaties’, which include client-information exchange possibilities, with countries such as Germany, France, the U.K. and the U.S. It still hopes to achieve deals with Italy, Sweden, Norway and several other countries.

Switzerland and Austria were removed from the grey list in September after they reached similar new double-taxation agreements which should allow foreign governments to monitor and track down potential tax evaders.