Liechtenstein: Tax Information Exchange Arrangement (TIEA)

A Tax Information Exchange Arrangement between the United Kingdom and Liechtenstein was signed in Vaduz, Liechtenstein on 11 August 2009 by Stephen Timms MP, Financial Secretary to the Treasury, and Dr Klaus Tschütscher, Prime Minister of Liechtenstein.

The new TIEA with Liechtenstein will enable the UK and Liechtenstein to exchange information to OECD and international tax standards to ensure that the right amount of tax is paid in each country in the future.

The text of the TIEA can be accessed on the Internet at: Liechtenstein (PDF 58K)

The text will shortly be laid as a Schedule to a draft Order in Council for consideration by the House of Commons. It will then also be available from the Stationery Office.

The Arrangement will come into effect as soon as each government has completed the necessary procedures to give effect to it under its domestic laws.

In order to avoid recession, President George Bush proposes a tax rebate for low and middle income Americans. At this point, there is an ongoing argument whether the rebate should be given to all Americans or only to families with a combined annual income of US$100,000. Bush is expected to elaborate on this plan during his State of the Union Address on January 28, 2008.

At this point, democrats are working on a similar proposal and intends to meet with Bush in order to speed up the drafting of the final measure. All this went full steam when last week’s reports showed that manufacturing contracted and unemployment jumped in December. Hopefully, the measure will work and lead to more rebates and tax cuts for the entire US population. There’s no better news than the thought that none of your income will go to taxes.

In what seems like an uphill battle against the budget, Governor Schwarzenegger proposes a 10% across the board cut in spending. This will mean a sharp decrease in payments to schools, the closing of several state parks, early release of low risk inmates, etc. 

Faced with stiff opposition, the governor urges the state to be responsible and spend only the money that they currently have. Such a brave pronouncement. Let’s hope that the state emerges unscathed from this crisis.