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Liechtenstein signs OECD Tax Convention

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2013-12-19 12:24:19 - Liechtenstein signed the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters

During the Global Forum on Transparency and Exchange of Information for Tax Purposes in Jakarta last month, and will take further steps to increase transparency and international co-operation. The Multilateral Convention is becoming a truly global instrument, with more than 60 signatories currently.

It also committed to implement automatic exchange of information with tax authorities worldwide and engage in bilateral negotiations to resolve the tax position of current clients of financial institutions based in Liechtenstein.

The Multilateral Convention provides for all forms of mutual assistance, such as exchange on request, tax examinations abroad, simultaneous tax examinations and assistance in tax collection, while protecting taxpayers’ rights. It also provides the option to undertake automatic exchange, requiring an agreement between the parties interested in

adopting this form of assistance.

This is an interesting development as Liechtenstein has traditionally been considered as a jurisdiction providing an increased level of confidentiality to high net-worth individuals and their families.

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