Liechtenstein signals efforts to stop tax evaders

Date: 15th August 2008

Liechtenstein has said that its banks will do more in the future to help tax authorities from other countries track down people using offshore accounts to evade payments.

Reuters reported that the tiny European state's Prince Alois von und zu Liechtenstein signalled the change in policy during a speech to mark the country's national day.

He reportedly "stopped short of giving details on the level of cooperation" the banks would extend to overseas tax authorities.

"We must seize the opportunity to show the world ... that the whole financial industry can be successful when we strengthen cooperation in tax questions," he said.

In an interview with the Financial Times, Liechtenstein's prime minister, Otmar Hasler, explained further.

"We will not give up bank secrecy," he said. "But we are willing to collaborate with other nations when it comes to the misuse of bank secrecy laws for tax evasion."

Recently, accountants from Grant Thornton warned that it appeared that HM Revenue & Customs was stepping up efforts to target business owners who try to avoid paying tax by hiding their cash in offshore accounts.

Gary Ashford, a tax investigations director at the accountant, said that anyone with an offshore account was "likely to feel some heat from HMRC in the near future".