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Australian signs a Tax Information Exchange Agreement with Liechtenstein



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Bill Shorten, MP  Assistant Treasurer 

Minister for Financial Services and Superannuation  Federal Member for Maribyrnong 

22 June 2011

No.096

AUSTRALIA SIGNS A TAX INFORMATION EXCHANGE AGREEMENT WITH LIECHTENSTEIN

With the signing of a Tax Information Exchange Agreement (TIEA) in Vaduz last night (AEST), Liechtenstein has become the latest country to enter into an agreement with Australia that will assist the Government in preventing offshore tax avoidance and evasion.

In announcing the signing of the TIEA with Liechtenstein, the Assistant Treasurer, the Hon Bill Shorten, said "there are now 28 jurisdictions that have signed such agreements with Australia, and the Gillard Government welcomes the Principality of Liechtenstein as a TIEA partner country."

The TIEA provides a legal basis for Australia and Liechtenstein to exchange taxpayer information.

"The signing of this TIEA demonstrates the commitment of Liechtenstein to international tax standards and is indicative of the progress that is being made worldwide to improve transparency in the financial system and prevent offshore tax avoidance and evasion" the Assistant Treasurer said.

Tax evasion undermines the fairness of tax systems and costs governments, and honest taxpayers, billions of dollars every year. Australia has a strong network of exchange of information agreements, making it increasingly hard to avoid Australian tax.

"Securing this latest agreement further expands Australia's TIEA network, boosting transparency in both the domestic and global financial systems and helping prevent offshore tax avoidance and evasion," the Assistant Treasurer said.

Further, as indicated in a joint declaration, Australia and the Principality of Liechtenstein will seek to continue to examine what further measures could be adopted to enhance their economic and trading relationship, and ways in which bilateral cooperation can be made as effective as possible.

These agreements will enter into force after Australia and Liechtenstein have completed their respective domestic requirements.

The text of the TIEA can be found on the Treasury website: www.treasury.gov.au