LDF and Swiss-UK Tax Agreement
verordnung-UK ^. The TIEA has been in force since August 2009 and the Steueramtshilfegesetz since
September 2010.
Part three comprises the arrangements which have to be made by HMRC. HMRC made the disclosure
facility available from 1 September 2009 and issues certificates for compliant taxpayers. Furthermore,
HMRC provides restriction-free market access for Liechtenstein FIs.'^' The opportunity for restriction-
free market access is a good arrangement, but it's debatable whether it will be used by the FIs. To
date, only Bank Frick has used the opportunity and opened a branch in London.'^'
Termination is regulated in part four. The MoU can be terminated with six months' advance notice.
The party who wants to terminate has to state their reasons.'? A termination is currently not anticipat-
ed. On the contrary, the LDF term has been extended to 2016 by the third Joint Declaration.'^
Notices and miscellaneous matters are regulated in part five and six. Notices have to be given by the
Prime Minster of Liechtenstein to the Commissioners of HMRC and vice versa.'* Furthermore, any
amendments have to be made in writing. The MoU took effect on 11 August, 2009.
Since the LDF was negotiated, delegations from HMRC have regularly visited Liechtenstein to discuss
issues, cases and questions with the Government and representatives of the financial market. A partic-
ipating representative reports that the atmosphere and the dialogue are illuminative and productive.
HMRC is engaged in offering practicable solutions to problems.
2.3.3.3 Schedule 1: Terms and Phrases
Schedule 1 defines terms and phrases. The most important terms are the following:
Financial Intermediary: The MoU's area of application is primarily FIs in Liechtenstein. An FI is
every person who is supervised by the Liechtenstein Financial Market Au-
thority (FMA). As this includes advisors and lawyers in addition to banks
and trustees, the definition is very comprehensive.'^' This definition is more
1? Steueramtshilfeverordnung-UK (AHV-UK) vom 31. August 2010, LBGI. 2010, Nr. 254
180 Memorandum of Understanding, 2009, part 3.
161 | jechtensteiner Vaterland, 2012.
162 Memorandum of Understanding, 2009, part 4.
163 Third Joint Declaration, 2010, no. 2.
1% Memorandum of Understanding, 2009, part 5.
1% Memorandum of Understanding, 2009, part 6.
166 Memorandum of Understanding, 2009, schedule 1, no. 1, letter g.
15' Hiristov, 2012, p. 171.
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