Liechtenstein and Britain sign tax deal
The UK and Liechtenstein reached an agreement Tuesday encouraging British taxpayers to voluntarily declare their assets.Zurich -- Liechtenstein said on Tuesday it had signed a deal with Britain to encourage British taxpayers holding accounts in the principality's banks to voluntarily declare assets.
"For the period between 2010 and 2015, the agreement provides special conditions to encourage the self-declaration of clients of Liechtenstein's financial service industry with tax arrears in the UK," said the principality in a statement.
British clients who reveal information voluntarily would be offered "favourable conditions" in the settlement of their tax payments.
These include a reduced period in the review of outstanding tax claims from a regular 20-year limit to 10 years, and the option of being taxed at a flat rate of 40 percent.
"This agreement sets out a pragmatic path that includes in a cooperative way all parties involved: clients, financial intermediaries and both governments," said Klaus Tschuetscher, Prime Minister of Liechtenstein.
Both governments will also begin negotiations for a double taxation accord, which would allow for information exchange to take action against tax cheats.
Liechtenstein yielded to international pressure and announced earlier in 2009 that it would ease strict banking secrecy rules and offer more assistance on tax offences.
AFP / Expatica