Liechtenstein’s parliament on September 16 unanimously passed the new Law on Administrative Assistance in Tax Matters for implementation of the tax information exchange agreement (TIEA) with the United States that was signed on December 8, 2008. This fulfills the legislative prerequisite so that the agreement can enter into force as planned on January 1, 2010, with effect for the fiscal year 2009 onwards.
"With the law's adoption, Parliament has cleared the path for a rapid procedure governed by the rule of law to provide international legal assistance," said Prime Minister Klaus Tschütscher. "Liechtenstein is creating legal certainty for its bank clients and financial intermediaries, not only vis-à-vis the United States, but also with a view to the other agreements we are concluding to implement OECD standards."
The new Law provides for information exchange upon justified request by the US tax authority. The request must contain the identity of the US taxpayer and the underlying reasons for the request. The agreed procedure provides that a Liechtenstein court may decide on the lawfulness of the request.
With entry into force of the agreement, the qualified intermediary status of Liechtenstein banks will also be extended by six years. As a qualified intermediary, a financial intermediary is permitted to continue business in US securities.
A comprehensive report in our Intelligence Report series, examining in depth the situation of offshore transparency and secrecy in a number of the most prominent jurisdictions, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report2.asp
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