Austria's New Approach on Banking Secrecy Law and Tax Treaty Policy

Alexander Hofmann, RA Dr. Alexander Hofmann

Abstract

For a long time, Austria, among Switzerland, Liechtenstein, Luxembourg and Belgium, was known as an investment place offering strong banking secrecy laws which indeed operated as to shield information in the hand of banks from being exchanged with tax authorities. Over the years, the global community felt ever more uneasy with states that favored tax evasion. The article traces the political pressure Austria faced within the OECD and the EU to change its policy. It introduces the new legislation Austria has put into effect in 2009 in order to honor its promise to step up to the OECD standard.