Liechtenstein on tax info deal

Following similar moves by Luxembourg, Austria and Switzerland, Liechtenstein said Monday it was willing to cooperate with the European Union on a system allowing for the automatic exchange of taxation information.

Prime Minister Adrian Hasler told the German business newspaper "Handelsblatt" it didn't make much sense to ignore the general trend.

"As a small country, it would be unrealistic to say we fundamentally refuse talks with the EU about an extended exchange of information," he said.

Same rules for all

But Hasler made a point of saying that there would be strings attached to a deal with the European Union. "An important question for us is how a bridge to tax compliance can be built for our clients, "he commented in his interview for "Handelsblatt."

The prime minister referred to a deal between his country and Britain under which account holders had been able to pay their taxes retroactively without legal punishment. Hasler said he was in favor of such a scheme across the EU.

He emphasized that a new standard for the automatic exchange of tax-related information had to be introduced globally, and not just in Europe. "If only the EU were to push ahead, a loss in competitiveness can capital outflows to regions outside the bloc must be feared," Hasler said.

hg/hc (AFP, Reuters)