Liechtenstein is no Longer a Tax Haven

Prince Maximillian of Liechtenstein has become part of a plan to extract taxes owed to Britain from its opaque bank accounts. Starting in September, every Liechtenstein bank account will be subject to a mandatory tax audit.

Rather than taking their money and fleeing from Liechtenstein, tax avoiders are rushing in to pay their taxes. They’re taking advantage of the amnesty under which only 10 years of tax is payable rather than the customary 20 years. Further, these tax avoiders can remain anonymous.

Prince Max doesn’t think that offshore banking will disappear though. In his opinion, “[t]he advantages are far more than tax evasion. The world is never stable and we offer diversity for investors in terms of assets, institutions, jurisdictions. Liechtenstein is stable, we have a strong Swiss currency and no deficit.”

Louise Armistead, Liechtenstein’s Heir Backs Radical New Tax Plans, Telegraph.co.uk, July 17, 2010.