Liechtenstein

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Combined Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.   A small number of entities or arrangements carrying out domestic business are exempt from the general obligation to have a licensed director or member of the board covered under AML law and in some cases may not engage an AML obliged service provider in Liechtenstein. Consequently, beneficial ownership in respect of these entities or arrangements may not be available in all cases.   Liechtenstein should further strengthen its measures to ensure that beneficial ownership information is available in respect of all relevant entities and arrangements as required under the standard. 
Phase 2 Rating Factors Recommendations
Compliant.     
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Practical availability of accounting information of entities and arrangements which do not carry out commercial activities and qualify as special asset dedications or entities subject to Private Asset Structure regime relies on AML supervision. Although AML supervision in Liechtenstein is adequate, concerns arise regarding the scope of accounting information checked during AML inspections.   Practical availability of accounting information of entities and arrangements which do not carry out commercial activities and qualify as special asset dedications or entities subject to Private Asset Structure regime relies on AML supervision. Although AML supervision in Liechtenstein is adequate, concerns arise regarding the scope of accounting information checked during AML inspections.  
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Liechtenstein has amended its law to broaden the possibility to provide foreseeably relevant information. However, the amendment remains untested in practice and it is unclear to what extent it broadens the possibility to provide all foreseeably relevant information in cases where the person subject of the request does not have any direct relation to the legal entity or arrangement in Liechtenstein.   Liechtenstein should monitor the application of the foreseeable relevance standard and, if necessary, take further measures to ensure that all foreseeably relevant information is provided as required under the standard in all cases. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Persons, who can inspect the EOI file and are notified of an EOI request, include clients of the information holder or third parties whose information is relevant to the request. Liechtenstein indicates that in practice, these persons are typically the information holder and persons named in the exchanged information (which is normally the taxpayer subject of the request). Nevertheless the broad scope of these persons goes beyond what is necessary to obtain the requested information.   Liechtenstein should ensure that information necessary to obtain the requested information is disclosed only to persons concerned with the assessment or collection of, the enforcement or prosecution in respect of the taxes covered by the exchange of information agreement. 
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Liechtenstein was able to process the majority of requests initially identified as based on stolen data. However, some of them have not been processed and it is not clear how larger volumes of such requests would be efficiently handled, in particular if challenged in court.   Liechtenstein should monitor that the application of the concept of ordre public does not prevent effective exchange of information and, if necessary, take measures to correct it. 
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Although it is acknowledged that the provision of requested information may be delayed in some cases due to valid reasons, the proportion of requests responded within 90 days and within 180 days does not fully correspond with effective exchange of information.   Liechtenstein should continue its efforts to ensure timeliness in the provision of requested information. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.