BRUSSELS (AFP) — Liechtenstein, at the centre of a major tax fraud row early this year, has pledged to boost cooperation with the EU in an effort to avoid future problems, a government spokesman said Friday.
"For Liechtenstein, it's a major policy shift," the spokesman said, after negotiations on an Anti-Fraud Agreement between Brussels and Vaduz were largely finalised Friday.
The agreement, when the last details are ironed out, will strengthen the exchange of information in the case of tax offences, with respect to both indirect and direct taxation, a statement said.
It also allows for the drawing up of more far-reaching rules on cooperation between Liechtenstein and foreign tax authorities.
In February, Germany launched a probe of rich citizens suspected of stashing billions of euros (dollars) in secret trusts in Liechtenstein to avoid paying tax.
Investigators in the United States, Britain, Australia, Italy, France, Sweden, Canada, New Zealand, Greece and Spain also launched investigations in an effort to track down taxpayers hiding money there.
"The strict protection of privacy and the basic rights of citizens will continue to apply in Liechtenstein and its financial center," Prime Minister Otmar Hasler said in the statement.
"With this cooperation agreement, however, measures against unlawful conduct will be provided that meet European standards," he said.
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