EU approves tax compliance agreements with Liechtenstein and Switzerland

Two tax compliance agreements with Liechtenstein and Switzerland have received the seal of approval from the EU council of ministers today, reports Economia.

And a third – with San Marino – was approved and signed today.

They herald the start of a new era of tax transparency with three countries that were formerly among the world’s most notorious tax havens.

The agreements will require EU member states’ tax administrations to exchange information on financial accounts automatically with the three countries. This is intended to prevent taxpayers from hiding capital representing income or assets on which tax has not been paid.

The EU-Switzerland agreement was signed in May and the EU-Liechtenstein one in October.