The Supreme Tax Court has refused leave to appeal against a lower court decision that an employee of a Liechtenstein company living in Switzerland was resident in Germany where his family home was and to which he returned at weekends.
The EU and Liechtenstein have signed a tax transparency agreement for the automatic exchange of information between the authorities of Liechtenstein and the EU member states on the bank accounts held locally for residents of the other state.
The Supreme Tax Court has held that the requirement that a payment recipient be precisely identified on demand as a condition for the deduction of the expense refers to the ultimate beneficiary.
The government has broken with its standing policy of not signing double tax treaties with tax havens with its signature on an OECD model treaty with Liechtenstein.
