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Cause and Effect in European Politics and Law

Luxembourg will no longer be a tax heaven

Adelina Marini, May 21, 2009

Luxembourg signed its first agreement for information exchange with the US on request and on all tax matters. This is an enormous step forward on international efforts to tackle tax evasion, reported the OECD. This is the first agreement of Luxembourg with an OECD member.

According to OECD the removal of cross border tax evasion and tax heavens will help developing countries top raise their income and invest it for such necessary things like schools, roads and hospitals. In April at the G20 summit in London an intention has been announced under the initiative of OECD for actions against tax heavens that do not comply with international standards for transparency and bank information exchange.

There is no region in the world now that hasn't agreed to apply the OECD international standards but still the bilateral agreements are not enough. The full list until 19th of May could could see here.