Ethics and governance in the European Financial centers

The Financial Times has reported that Britain’s crown dependencies have been plunged into uncertainty after the government signalled, in a dramatic sign of the intensifying pressure on tax havens, that their corporate tax regimes were unacceptable to the European Union.

The news is set to force Jersey, Guernsey and the Isle of Man to overhaul their tax regimes, possibly requiring them to introduce corporation tax.

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John Christensen visited Luxembourg this week.

Two articles from TJN are online about this visit:
- Taboos and blood sports in Luxembourg
- Downtrodden dentists and banker heroes in Luxembourg

The same week:
- Paul Chambers, from Atoz Tax Advisers, advised banks not to disclose data on request and to wait for a court decision to authorise such disclosure whereas nothing is enforced in Luxembourg to organise the practical implementation of OECD agreements; but Paul Chambers admitted that the offshore business model is ending (original quotation : “Le modèle offshore touche vraiment à ses limites”)
- Luc Frieden would have stated that he could imagine automatic exchange of information with jurisdictions with which Luxembourg signed an agreement.

I wish politicians and professionals in Luxembourg were proactive and receptive enough to do the aggiornamento when I suggested it a couple of years ago.

The drop excavates the stone, not with force but by falling often...

Europeanvoice.com has reported that Luxembourg and Austria are blocking adoption of an EU anti-fraud agreement with Liechtenstein, because of concerns that their banks will be left at a competitive disadvantage. They are also opposing mandates for the European Commission to negotiate similar agreements with Andorra, Monaco, San Marino and Switzerland.

The Liechtenstein agreement covers co-operation with member states to tackle intentional tax evasion and tax fraud. It would oblige the principality to provide, on request, details on individual account holders and value of deposits.

Austria and Luxembourg complain that the agreement is too narrow, as it would not force Liechtenstein to reveal full information on beneficiaries of trusts and shell corporations.

Austria and Luxembourg do not like transparency as they support trusts and shell corporations.

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