<http://www.telegraph.co.uk/expat/6099680/Liechtenstein-signs-taxation-agreem ent-with-Luxembourg.html
The Telegraph Liechtenstein signs taxation agreement with Luxembourg The bilateral; document is the third to be signed by the principality since March and signals more openness in its banking practices. By Emma Hartley Published: 9:41AM BST 31 Aug 2009 Liechtenstein's bilateral agreement with Luxembourg is the third such agreement it's made. The principality of Liechtenstein has signed a double taxation agreement with Luxembourg, which represents a step away from its historical identity as a tax haven. The agreement will promote the exchange of data between the two small countries that will allow each to clamp down on tax cheats. This is the third such treaty to be signed by Liechtenstein the previous two were with the United States and Germany. The agreements, which conform to standards recommended by the Organisation for Economic Cooperation and Development, are the result of a process that began in February with the sale to the German intelligence service of a list of Germans who banked with the LGT Bank in Liechtenstein. The disc was sold for #3.75 million by a former employee of LGT and resulted in scandal in Germany, where the boss of Deutsche Post, Klaus Zumwinkel, was forced to resign when his name was found to be on the list of alleged tax evaders. Sarah Doig, the chargi daffairs at the British embassy in Bern, which has responsibility for Liechtenstein as well as Switzerland, said that the movement for compliance with the OECDs rules got more urgent in March at the G20 summit in London. At the moment Liechtenstein is on a grey list of countries that are less than completely transparent on these matters, she said. The target number of such agreements to get off the list is 12. Switzerland has initialed 12 already but Liechtenstein is a tiny country with only a very small number of civil servants. Its working on it. Prince Alois, Liechtensteins head of state, recently expressed the hope that its know-how in wealth management would allow his country to remain a major financial centre despite the rule change. Liechtenstein recently made a tax information exchange agreement with Britain, which is a step towards a double taxation agreement.