Liechtenstein to Divulge Bank Account Details

The country of Liechtenstein has always been thought of by many as a tax haven, but this is set to change as the German speaking nation has just signed an agreement with the United Kingdom on divulging the account details of British Citizens.

The results of this agreement are that HM Revenue and Customs agency now has full knowledge of the account details of British citizens, and they can now start to levy taxes on around five thousand investors who have previously taken advantage of Liechtenstein’s tax free status.

Over £3bn is apparently held in secret accounts in the country, and the British government is now starting to actively pursue account holders. Those that refuse to volunteer their account details will be subject to the full extents of the law.

To sweeten the deal, the British government is offering investors who reveal their information to the government a maximum penalty capped at 10% of the tax evaded over 10 years.

Alternatively, the HMRC said those who try to hide from the government will face significantly greater penalties alongside the risk of losing their entire savings.

This is welcome news according to the British government as according to the Treasury minister Stephen Timms, it represented a “big step forward” for taxation in the UK.

However, for the many thousands of people who have relied on the privacy and security of the Liechtenstein banking system, this is an unwelcome change. But, with increased pressure from many western nations, it would seem that these changes are unavoidable.

With Lichtenstein just one of many nations which has been forced to divulge the details of foreign account holders, other countries have already followed suit and are starting to reveal this information.

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