{"id":10888,"date":"2011-07-08T08:45:45","date_gmt":"2011-07-08T07:45:45","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=10888"},"modified":"2011-07-08T11:37:14","modified_gmt":"2011-07-08T10:37:14","slug":"liechtenstein-reveals-the-weakness-of-the-current-european-savings-tax-directive","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/07\/08\/liechtenstein-reveals-the-weakness-of-the-current-european-savings-tax-directive\/","title":{"rendered":"Liechtenstein reveals the weakness of the current European Savings Tax Directive"},"content":{"rendered":"<p>Liechtenstein has just announced the latest sums it has collected under the terms of the European Savings Tax Directive. It was a<a href=\"http:\/\/www.tax-news.com\/news\/Liechtenstein_Presents_EU_Withholding_Tax_Figures____50233.html\" target=\"_blank\"> measly\u00a0\u00e2\u201a\u00ac7.8 million<\/a>.<\/p>\n<div>\n<p>Working backwards this is 20% tax on \u00e2\u201a\u00ac40 million interest.\u00a0Assuming 2% interest, this is tax on interest income on \u00e2\u201a\u00ac 2 billion capital (which may seriously overstate the case: German bonds paying over 3% p.a.).<\/p>\n<p>Liechtenstein <a href=\"http:\/\/www.liechtenstein.li\/index.php?id=24&amp;L=1\" target=\"_blank\">banks have\u00a0 \u00e2\u201a\u00ac 140 billion assets<\/a> under management.<\/p>\n<p>So tax was levied on less than 2% of assets. Generously assuming only 40% of assets were fixed income then the savings tax is less than 5% effective in Liechtenstein which is no surprise with nearly 100,000 foundations, trusts, companies and anstalts in the\u00a0Principality.<\/p>\n<p>What is clear is that the case for reform of the European Savings Tax Directive is overwhelming given this massive failure of the existing\u00a0arrangement\u00a0to tackle serious tax abuse.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Liechtenstein has just announced the latest sums it has collected under the terms of the European Savings Tax Directive. It was a measly\u00a0\u00e2\u201a\u00ac7.8 million. Working<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/07\/08\/liechtenstein-reveals-the-weakness-of-the-current-european-savings-tax-directive\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[61,10,55,1],"tags":[],"class_list":["post-10888","post","type-post","status-publish","format-standard","hentry","category-liechtenstein","category-tax-avoidance","category-tax-evasion","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/10888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=10888"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/10888\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=10888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=10888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=10888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}