Ireland, Liechtenstein Enhance Tax Cooperation

by Jason Gorringe, Tax-News.com, London

15 October 2009

On October 13, Liechtenstein’s Prime Minister Klaus Tschütscher and Irish Minister of Finance Brian Lenihan signed a tax information exchange agreement (TIEA), which is expected to bring into force in 2010 the text initialed in September 2009.

The treaty, which follows the OECD Model Tax Agreement, will provide for the exchange of information upon request to aid investigations carried out by the tax authorities of the respective countries in cases of tax crimes and in civil tax matters. The agreement is expected to enter into force from 2010, provided the two countries complete their individual ratifications procedures by year-end.

"Today's signing is another consistent step on Liechtenstein's path of international cooperation in tax matters. With this step, we are also intensifying our relations with Ireland," said Tschütscher.

In addition to concluding the agreement, Liechtenstein and Ireland have agreed to continue talks on closer cooperation between the two countries. The goal is to conclude a double taxation agreement as soon as possible.

On March 12, 2009, Liechtenstein recognized the OECD standard on tax cooperation as binding. Since then, Liechtenstein has already signed various OECD-compliant TIEAs and double taxation agreements, including with the United States, France, Germany, the United Kingdom, and Luxembourg. Already at the beginning of the year, Liechtenstein agreed to implementation of the OECD standard as part of the multilateral EU Anti-Fraud Agreement and thus with all 27 member States of the EU. At the bilateral level, the Liechtenstein government is currently negotiating with other countries on OECD-compliant tax agreements.

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