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Luxembourg signs tax agreement with Britain
Posted: 03 July 2009
Luxembourg announced the signing of a double taxation and tax evasion pact with Britain following international pressure after the publication of the OECD Three tier list.
"The protocol provides for exchange of information upon request among the tax administrations of both countries," the Luxembourg government said in a statement. Under international pressure, Luxembourg recently promised to cooperate with foreign tax authorities in tax fraud cases.
Luxembourg's aim is to avoid inclusion on a list compiled by the Paris-based Organisation for Economic Cooperation and Development of countries that have not fully implemented international tax reporting standards. In order to avoid inclusion on the OECD list, Luxembourg has to negotiate new bilateral accords with other countries on the exchange of tax information. Luxembourg's banking secrecy laws have helped transform the tiny country over the years into a major European financial hub, where the sector represents a large share of the overall economy.
Click here for more information on Luxembourg
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