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Liechtenstein Seeks Constructive Dialogue With Germany,
by Ulrika Lomas, Tax-News.com, Brussels
Wednesday, May 13, 2009
Despite recent highly controversial remarks made by Germany’s Finance Minister
Peer Steinbrück, Liechtenstein has once again reiterated its firm commitment
to fully comply with the Organisation for Economic Cooperation and Development’s
(OECD) standards on cooperation in tax matters, and, moreover, has pledged its
determination to negotiate a swift agreement with Germany – an agreement
which would allow German assets held in Liechtenstein to be taxed.
Keen to emphasise his country’s willingness to negotiate with its neighbour,
Liechtenstein’s Prime Minister Klaus Tschütscher remarked in a recent
press release: "Since June 2008, we have expressed an offer to negotiate
an agreement with Germany on tax cooperation according to OECD standards."
Indeed, according to the release, Germany’s Federal Finance Ministry
agreed to enter into constructive dialogue with Liechtenstein at the beginning
of the year, and, since March 13, a delegation from Liechtenstein has been engaged
in talks with representatives of the Federal Finance Ministry.
The press release also confirms Liechtenstein’s offer to extend its full
and unreserved cooperation to Germany in terms of tax cooperation, in accordance
with OECD standards. Indeed, according to the Prime Minister: "We are even
going beyond this offer and can imagine rules allowing for taxation of German
assets in Liechtenstein".
Liechtenstein’s proposal would grant Germany greater cooperation in tax
matters than currently extended to the United States under an agreement signed
in December 2008.
Nevertheless, expressing his dismay and disappointment at Steinbrück’s
remarks that Liechtenstein is encouraging tax evasion, Prime Minister Tschütscher
warned that such comments would lead to lasting political damage.
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