LUXEMBOURG (AFP) — Luxembourg said on Thursday it had signed a double taxation and tax evasion pact with Britain following international pressure to stamp out tax fraud.
"The protocol provides for exchange of information upon request among the tax administrations of both countries," the Luxembourg government said in a statement.
Under fierce international pressure, Luxembourg recently promised to cooperate with foreign tax authorities in tax fraud cases.
Its aim was to avoid inclusion on a list compiled by the Paris-based Organisation for Economic Cooperation and Development of countries that have not fully implemented international tax reporting standards.
In order to avoid inclusion on the OECD list, Luxembourg has to negotiate new bilateral accords with other countries on the exchange of tax information.
Luxembourg's banking secrecy laws have helped transform the tiny country over the years into a major European financial hub, where the sector represents a large share of the overall economy.
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