Ethics and governance in the European Financial centers

Angel Gurria, OECD Secretary-General, recently said in the framework of the Conference on the 50th Anniversary of the OECD Model Tax Convention that "Co-operation is required to ensure that taxes do not become the last barrier to expanding cross-border trade and investment, but also to ensure that taxpayers pay the right amount of tax, at the right time and in the right country. It is worrisome to see some countries that still try to attract tax evaders worldwide through secrecy and lack of transparency. It is also worrisome that some financial intermediaries still make a business out of that and promote the use of tax havens (...) it is time to stop these practices by increasing international co-operation to counter them."

I guess he did appreciate what Lucien Thiel, former chairperson of the Luxembourg Bankers Association said early 2008. This important leader from the banking sector admits that banks do not control the client’s honesty: He stated just after the beginning of the Liechtenstein affair that “It is not our duty to control if the taxpayer was honest” and "Banking secrecy remains : Luxembourg is not compelled to communicate its clients'data." (In L'Essentiel, 27.02.08).

Mr Lucien Thiel is a respected leader whose statements reflect and influence the business behaviours in Luxembourg. He clearly confirms that Luxembourg does not care of the taxpayer's honesty. This is true for tax fraud as well as for tax evasion. Hence the use of entities from the BVI and similar jurisdiction in the setting up of Luxembourg registered companies as traced in the Corporate Registration.

But anyway Luxembourg is a jurisdiction that may provide "generous grants" for which it is thanked...