Liechtenstein strikes tax deal with Germany

ZURICH, July 10 (Reuters) - Liechtenstein has struck a tax information deal with Germany which allows the exchange of information on request, the principality said on Friday. The agreement is similar to a landmark deal last year with the United States, which paved the way for the exchange of bank data in certain cases of tax evasion, the government said. It provides for a due process in the exchange of information between Germany and Liechtenstein and follows OECD guidelines. "It also gives a clear signal with regard to other current negotiations which we want to conclude swiftly in order to implement the OECD standards," Prime Minister Klaus Tschuetscher said in a statement. A number of European countries maintain strict laws protecting banking privacy, although many of these have been modified in recent months as their governments seek to comply with the standards of the Organisation for Economic Cooperation and Development (OECD). Former Deutsche Post chief Klaus Zumwinkel was given a suspended jail term earlier this year for evading almost 1 million euros ($1.39 million) in taxes using a Liechtenstein trust, a case which put pressure on the tiny Alpine nation to reform its bank secrecy laws. Ministers from OECD countries have agreed on the possibility of imposing sanctions on countries that do not stick to the OECD's tax standards, but left open when such measures should be implemented. The agreement still requires ratification and will be effective from the 2010 tax year. (Reporting by Sam Cage; Editing by Ron Askew) ($1=.7173 Euro) Keywords: LIECHTENSTEIN TAX/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.