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Liechtenstein tax agreement extended

News Release issued by the COI News Distribution Service on 07 February 2012

The UK Government’s groundbreaking tax agreement with Liechtenstein - the Liechtenstein Disclosure Facility (LDF) - which has ensured the UK receives its fair share of tax revenues from UK taxpayers with investments in the principality, has been consolidated today with the initialling of a Double Taxation Agreement (DTA).

In addition, the LDF will now operate until 5 April 2016.

DTAs ensure that the taxpayers of the signatory countries are taxed fairly and the respective countries receive their fair share of tax revenues.

Today’s agreement will benefit both countries as Liechtenstein has been the only European Economic Area (EEA) member without a DTA with the UK.

Liechtenstein will now implement new laws ensuring exchange of information arrangements for the first time.

David Gauke, Exchequer Secretary, said:

"This government is committed to ensuring that offshore income is properly taxed.

"Today’s agreement takes that commitment forward by providing greater transparency and certainty to the taxpayers of both our countries about how their incomes and gains will be taxed.”

Dave Hartnett, Permanent Secretary for Tax at HMRC, said:

"As the number of disclosures already exceeds the total we originally expected for the whole period of the LDF, we have agreed with the Lichtenstein Government that it makes sense to extend the facility by one year to 5 April 2016.”

Notes to Editors

1. The Liechtenstein Disclosure Facility (LDF) was signed in August 2009 and was to run from 1 September 2009 to 31 March 2015. There have been more than 2,000 disclosures so far.

2. The agreement allows UK residents to legitimise their tax affairs for the past and ensure they are tax-compliant for the future. It is presently underpinned by a tax information exchange agreement and by special legislation in Liechtenstein.

3. By the end of the facility all UK taxpayers holding assets and investments in Liechtenstein should be meeting all their UK tax liabilities.

4. In December 2010, the Liechtenstein Government completed the necessary legislative changes to deliver their “tax assistance and compliance” (TACP) procedures.

5. For more of the Liechtenstein Disclosure Facility - http://www.hmrc.gov.uk/disclosure/liechtenstein-disclosure.htm

6. Follow HMRC on Twitter @HMRCgovuk

Website www.hmrc.gov.uk

Contacts:

HM Revenue & Customs Press Office
HMRC-Press-office.NDSmanagement@hmrc.gsi.gov.uk