Liechtenstein Submits Law On Mutual Cooperation In Tax Matters With US

11.06.2009


The Liechtenstein government has recently adopted a report and proposal pertaining both to its Tax and Information Exchange Agreement (TIEA) with the US, signed on December 8, 2008, and to a law on mutual cooperation in tax matters with the US. An amendment to Article 102 of its constitution has also been approved.

The key issue surrounding Liechtenstein’s TIEA with the US, which is based on the Organisation for Economic Cooperation and Development’s (OECD) standard, is the element of mutual support provided by an exchange of information, imperative for the application and enforcement of the respective domestic tax laws.

According to Liechtenstein’s government, providing for an exchange of information enables mutual cooperation to take place between tax authorities, allowing them to work together. Nevertheless, the government has also confirmed that this exchange of information will not be granted automatically, only upon specific request.

Liechtenstein’s TIEA with the US reflects its recent commitment to adhering to and implementing the OECD’s standards regarding transparency and information exchange in tax matters, expressed in its declaration on March 12.

However, in order to execute the TIEA, Liechtenstein must first adopt a new national law. As a result, the government presented to parliament a law on mutual cooperation in tax matters with the US. This law sets out the precise conditions and procedures required for granting mutual assistance, as stipulated in the TIEA. Designed to ensure that assistance is provided swiftly and efficiently, the law also provides for the necessary legal protection.

Both the TIEA and the law on mutual cooperation in tax matters are due to enter into force on January 1, 2010.

Quelle: Tax-News.com