Liechtenstein, once one of the world's most secretive tax havens, is going further than almost any other centre in cleaning up its act. The deal is a dramatic example of a jurisdiction giving up banking secrecy in return for recognition as a legitimate financial centre. It is helping flush out tax evaders by making its banks close non- compliant accounts by 2015.
I’m not going to get over-excited, I hope, but I think the new UK / Liechtenstein Tax Information Exchange Agreement moves information exchange into a new era.
This deal is like no other Tax Information Exchange Agreement. Take this from the preamble:
The Government of the Principality of Liechtenstein and the Government of the United Kingdom of Great Britain and Northern Ireland (together “the Contracting Parties”) desiring to:
(a) regulate the exchange of information with respect to taxes between the Contracting Parties and facilitate tax cooperation and taxpayer assistance, and