The EU has signed a tax exchange agreement with Liechtenstein to automatically share information on the bank accounts of each other's residents, starting in 2018, in a move designed to make it harder for EU citizens to conceal cash from the tax authorities in bank accounts
The EU and Liechtenstein agreed in October 2015 to clamp down on tax fraud and tax evasion. The information to be exchanged includes not only income, such as interest and dividends, but also account balances and proceeds from the sale of financial assets.
The agreement, which has been approved by the European Parliament, will come into force on 1 January 2016. From that date Liechtenstein will apply stricter measures, equivalent to those in place within the EU since March 2014. The agreement also complies with the 2014 global standard on the automatic exchange of financial account information promoted by the OECD.
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