Luxembourg signs OECD tax convention
(CS) Luxembourg, along with Austria, Singapore and Saudi Arabia, signed the OECD convention on Mutual Administrative Assistance in Tax Matters on Wednesday.
Finance Minister Luc Frieden commented that “the signature of the convention on Mutual Administrative Assistance in Tax Matters is an important step for Luxembourg. It shows our commitment to implement the principle of automatic exchange of information which is however only efficient if it is implemented on a global level.”
The minister also pointed out that the automatic exchange of information could only succeed if a level playing field is established between the international financial centres.
The initiative is only the latest in a series of moves to reform Luxembourg's banking secrecy and to open up to international exchange of information.
The OECD convention is designed to act as a model for future negotiations on bilateral cooperation on fiscal matters. It was initially drafted by the European Council and the OECD.
Since 2011 member and non-member countries of one or both organisations can sign the convention, with 40 countries opting to join the initiative so far.
At the OECD forum on Wednesday, Frieden also spoke at a discussion on the taxation of multinationals. At the Too Big to Pay Tax talks, the minister agreed that a double non-taxation could not be tolerated.
However, the Luxembourg finance minister added that it was necessary to ensure an effective taxation taking into account the international nature of commercial activity, competitiveness and the risk of a re-nationalisation of markets.