After Switzerland, bank secrecy also falls in Liechtenstein. The Minister of Economy and Finance Pier Carlo Padoan, and the Prime Minister and Minister of Finance of Liechtenstein, Adrian Hasler, today signed the agreement on the exchange of information for tax purposes.
The two ministers also signed an additional protocol on 'group requests'. The agreement between Italy and Liechtenstein will make it possible to further develop administrative cooperation between the two countries and therefore strengthen the fight against tax evasion, explains the Ministry of Economy in a note.
The agreement is based on the OECD model of Tax Information Exchange Agreement (TIEA) and allows the exchange of information on request relating to all taxes. The State from which the information is requested cannot refuse to provide the requesting State with administrative collaboration due to lack of interest for its own tax purposes, nor oppose bank secrecy.
The Additional Protocol, which governs group requests, will allow for requests to be submitted in relation to categories of behavior that suggest the intention of taxpayers to hide assets/assets illegally held in Liechtenstein from the Italian tax authorities.
The agreement on the exchange of information and the additional protocol apply after ratification by the parliaments of the respective countries, starting from the signature. Consequently, the exchange of information may concern elements existing as of today.
With the signature, the Principality is considered a 'non-black list' country for the purposes of the Voluntary Disclosure, thus allowing Italian citizens who illegally hold assets/assets in Liechtenstein to access the regularization procedure under the most favorable conditions provided by law (payment in full of the reduced taxes and penalties).
Together with the agreement and the additional protocol, the ministers also signed a joint declaration of a political nature with which the two countries confirm their mutual commitment to apply the automatic exchange of information based on the OECD global standard since 2017.
Immediately after the entry into force of the agreement and the protocol, Italy will formally include Liechtenstein in the white lists. Finally, with the Joint Declaration, Italy and Liechtenstein undertake to start negotiations for a convention against double taxation, once the agreement and the protocol enter into force.
