"Liechtenstein has a lot to lose"

Liechtenstein is facing major challenges due to the changing international tax environment. Multinational corporations such as Apple and Starbucks are using loopholes to avoid taxes, which is coming under greater pressure as a result of the financial crisis. The OECD and the EU are leading efforts to combat these practices. Countries such as Germany are putting high-tax countries under pressure from low-tax countries such as Switzerland and Liechtenstein. Professor Michael Lang warns that these countries need to rethink their tax practices to avoid being blacklisted. Liechtenstein has so far been inadequately prepared and could suffer considerable damage if it ignores the developments. An international harmonization of tax laws could force Liechtenstein to increase its corporate tax rates, which could hit the country hard economically.

Topics in the publication

• International tax avoidance
• Reactions and measures
• Impact on low-tax countries
• Warnings and recommendations
• Current status and future prospects