LDF and Swiss-UK Tax Agreement
exempt from punishment, the conclusion of further agreements would be desirable but difficult to real-
ise.
"The world is only getting smaller, and it is only a matter of time before taxpayers run out of jurisdic-
tions," said Jason Collins, partner of McGrigors.?" It is certain the pressure on tax havens and the
OECD's fight against banking secrecy will continue until “rule-makers” are satisfied.°'“ Liechtenstein
and Switzerland should continue to move their financial centres towards this new reality in order to
guarantee favourable positions.
5.7 The Future of the Financial Centres of Liechtenstein and Switzerland
The recent developments in Liechtenstein and Switzerland regarding tax issues caused a fear over the
future of the financial centres. Despite the AAA-Rating of the national finances, high standards of
financial services, and strength of the Swiss franc, it is expected that Switzerland will lose its attrac-
tiveness as a financial centre.” Of course, the banks, advisors and trustees must move on and begin to
operate in a tax compliant world. It is not important whether someone agrees with the development
and the behaviour of foreign states due to a fact that the development is unstoppable. Power is une-
qually distributed and the countries with the largest “armoury” will use it to increase the pressure on
the weaker ones in order to obtain tax information to prosecute tax evaders and companies assisting
them. Those states have identified that their tax base is being undermined, so it’s natural that they
would leverage their power to prevent it.
Some banks, advisors or trustees have identified the change and adapted their philosophy. They were
astonished at the speed and the extent to which clients are willing to disclose their assets and to pay
the outstanding tax. They understood that, in the current digital world, the risk of detection has in-
creased significantly.?' Furthermore, financial centres in Asia have also moved towards a tax compli-
ant business model. The financial market authority of Singapore has recently strengthened the Frame-
work for International Tax Cooperation.” Hong Kong has ratified several TIEAs.” Thus the number
37 Grocott, 2009 (1), p. 19.
318 Gilleard, 2011, p. n/a.
31% Goekmen, 2011, p. 26.
20 Summers, 2013, p. 45.
21 Summers, 2013, p. 45.
522 Monetary Authority of Singapore, 2013.
93 Exchange of Tax Information Portal, 2013.
92
