Liechtenstein's 'Attractive' Disclosure Scheme To End

by Ulrika Lomas, Tax-News.com, Brussels

01 May 2012

The Liechtenstein government has announced that since the beginning of the year, when the principality’s new tax law entered into force, around 400 individuals and legal entities in Liechtenstein have elected to submit voluntary tax declarations to the tax authorities, benefiting as a result from the government’s attractive, although limited, voluntary disclosure scheme.

The scheme is due to apply until December 31, and during this period anyone electing to submit a voluntary declaration pertaining to an offence committed under the provisions of the tax act will simply be required to pay the tax due for the past five years, and will not be subject to a penalty, nor surcharge, nor interest on arrears.

The Liechtenstein government notes the disclosure may pertain to many forms of undeclared assets, including cash, bank accounts, securities accounts, gold, capital gains, earned income, donations, bequests, real estate gains, and winnings.

According to the government, after December 31, in the event of a voluntary disclosure, a surcharge of 10% on the tax due will be imposed and interest arrears raised.

The government warns that failure to submit a voluntary declaration will result in a fine being imposed in addition to the tax payment, in the event that the administration uncovers the offence, adding that the fine may in some cases be as much as three times the evaded tax or levy.

Recommended