Liechtenstein Judge Casts Doubt On OECD Powers

by Ulrika Lomas, Tax-News.com, Brussels

24 April 2002

In the wake of last week's announcement that Liechtestein will remain on the OECD blacklist of 'uncooperative tax havens', there has been discussion within the country's financial services sector as to the extent of the multilateral body's powers.

Speaking to the Liechtesteiner Vaterland this week, Professor Carl Bauden bacher, Liechtestein judge at the EFTA (European Free Trade Association) court in Brussels, suggested that any OECD measures could not be properly and legally enforced.

When questioned as to whether the principality's membership of the European Economic Area (EEA) group might provide some sort of protection in the event of OECD sanctions, Professor Baudenbacher told the newspaper that: 'In my opinion, this is a political rather than a legal question.'

It has emerged that the Organisation for Economic Cooperation and Development has yet to respond to the Liechtenstein government's latest communication, dated April 9. In this letter, the jurisdiction's authorities made it clear that they could not make the concessions demanded in order to be removed from the blacklist.

Recommended