European parliament endorses Liechtenstein deal
The European Parliament has endorsed a deal between the EU and Liechtenstein that will make it harder for EU citizens to hide cash in bank accounts in the state
Liechtenstein and the EU signed a deal in October this year, agreeing to automatically exchange information on the financial accounts of residents.
The agreement aims to improve international tax compliance, by clamping down on tax fraud and tax evasion.
The European Parliament approved the deal with 561 votes to 49, with 30 abstentions.
In a statement, the parliament said the agreement complies with OECD’s global standard on the automatic exchange of financial account information.
Following the vote, tax administrators in the EU members states and in Liechtenstein will be able to correctly identify the taxpayers concerned, administer and enforce tax laws in cross-border situations, assess the likelihood of tax evasion being perpetrated and avoid unnecessary further investigations.
