January 24, 2013 / 12:10 PM / in 5 years

UPDATE 1-Austria expects millions from Liechtenstein tax deal

* Deal to tax assets in banks, trusts takes effect in 2014

* Austria expects a “few hundred million” euros for budget

* Accord aims to track down tax dodgers (Adds Fekter comments, background)

VIENNA, Jan 24 (Reuters) - Austria has struck a tax deal with Liechtenstein, adding another neighbour to its web of accords that lets Vienna tax money that its citizens have quietly parked abroad, Finance Minister Maria Fekter said on Thursday.

She said the pact, expected to be formally signed in Liechtenstein’s capital of Vaduz on Tuesday, was estimated to raise a one-off “few hundred million” euros for the Austrian budget when it takes effect next year.

“This is a big step towards of tax fairness and against tax dodging,” she told a news conference.

Based on a similar deal Austria struck with Switzerland last year, the agreement will tax undeclared Austrian assets entrusted to banks and trusts based in the tiny principality next door. Details of tax rates will be released next week.

Austrian officials said money collected under the accord would start flowing next year but that some revenue could come even earlier as citizens turn themselves in to tax authorities.

Liechtenstein is working to reverse its image as a haven for tax dodgers. It is following in the steps of Switzerland, which agreed similar deals with Austria, Germany and Britain last year.

“We are providing legal certainty to Austrian customers of our financial centre,” Liechtenstein Prime Minister Klaus Tschuetscher said in a statement, stressing the country’s commitment to international efforts against money laundering.

Austria, which wants to balance its budget by 2016, has said it expects a windfall of 1 billion euros ($1.33 billion) from its Swiss deal.

Liechtenstein struck a landmark deal with the United Kingdom in 2009 called the ‘Liechtenstein Disclosure Facility’, which offers a type of amnesty to British taxpayers seeking to regularise their affairs. ($1 = 0.7530 euros) (Reporting by Michael Shields; Editing by Toby Chopra)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below