Liechtenstein - not anymore a paradise for unfair tax-payers

[Steven]

Today, Liechtenstein has agreed to reveal the secret of the majority of its bank clients. It will collaborate with the Organisation for Economic Cooperation and Development. This action is necessary on the background of crisis, since up to the moment, Liechtenstein was known to be similar to an off-shore area. Trillions of euros are known to be hidden in Liechtenstein banks.
Somebody will now go to prison

AHN Staff

Vaduz, Liechtenstein (AHN) - The Liechtenstein government said Thursday it will ease banking secrecy laws and trade information with foreign government to battle tax fraud and evasion.

In a statement, Prime Minister Otmar Hasler said, "We are aware of our responsibility as part of a globally integrated economic area. With today's Declaration, we are making our contribution to a joint solution that will make an effective enforcement of foreign tax claims possible and takes account of the legitimate interests of the clients of our financial center at the same time."

The principality is apparently bowing down to global pressure on countries identified as tax havens to be more transparent. Other countries being targeted by an international campaign led by the Organization for Economic Cooperation and Development to ease their banking secrecy regulations are Switzerland, Austria and Luxembourg.

Switzerland's UBS is in the middle of a court battle in the United States to reveal the names of over 5,000 Americans who have accounts in the largest Swiss bank. A disgruntled LGT bank employee in Liechtenstein sold to Germany last year a CD with names of Germans who had secret bank accounts in the principality. The CD led to the filing of tax evasion cases against some wealthy Germans.

Hasler reiterated its commitment to the OECD standard on transparency and information exchange on tax matters and started talks with interested nations to lead to bilateral tax agreements.

Hasler stressed, "Our bank secrecy has always served to ensure the legitimate protection of the privacy of the citizen, which we will continue to retain. With this Declaration, however, we want to make clear that bank client confidentiality in future cannot be misused to facilitate tax crime."

source http://www.allheadlinenews.com/articles/7014395674

[Benn]

wow, that is quite unexpected from Liechtenstein's part. I mean hiding people's revenues was the basic trait of this country. It will now lose billions, since nobody will see prospects in this country.

[Terry]

It was more than enough for this state to swallow Europe's money. Ordinary people look for ways to hide at least $100 a month from paying it as tax, while billionaires are greedier and hide billions in Liechtenstein banks. Justice at least triumphed.

[Faw_Peter]

After Liechtenstein (and Andorra) agreed to help in the fight against tax dodgers, Switzerland is now pressured to do the same. Bear in mind that, 27% of the world's offshore wealth is managed by Swiss banks.

[Nathan]

It'll be funny to see thousands of millionaires in jails. I wonder what they do now, there must be a lot of "motions" around these banks. But, it will take years for revealing the blacklisted taxpayers.

[Peach]

Among those who used these banks are not only the world's richest businessmen, I'm more than certain that European officials - deputies, parliamentaries, secretaries also used these banks as they knew perfectly how the system works.

[Riser]

Well I understand them. If I were wealthy, doubtlessly I would hide my money for tax-evasion. Money consist in effort. Is there a reason I must share my millions with the government?

[Terry]

Liechtenstein is one of the smallest countries in the world. I'm just wondering, if it starts to lose its competitive advantage consisting in the banking system secrecy, how and on hwat basis woul dit further develop?

[Benn]

Having a population of only 36,000 people won't cause it big problems. I think it's the smallest number of population in the world. This number of people is enough even for a couple of big enterprises. For example, only BMW company has 107,500 employees.

[Peach]

Having a population of only 36,000 people won't cause it big problems. I think it's the smallest number of population in the world. This number of people is enough even for a couple of big enterprises. For example, only BMW company has 107,500 employees.

yes, and also because it's small, it can't have all of its workers employed in one or two fields. Liechtenstein has one of the biggest in the world Gross Domestic product level, so its people are not going to face a big decrease, I'm sure there are a lot of business opportunities there beside banks.

[Benn]

Liechtenstein is a country with nice picturesque places, so why wouldn't it focus on tourism business? Liechtenstein's GDP is on the first place in the world, so they can't always maintain the first position, others want to be the first as well.

[Steven]

Liechtenstein has got a great developed industry. A number of 73,700 national companies work for the economy. The VAT is low - 18%, which attracts investments. Its disadvantages is that 90% of energy resources are imported.