Tax news

Luxembourg bank accounts

Wijn to bring up anonymous bank accounts in Luxembourg

 

21-4-2006


State Secretary Wijn is to insist that the Luxembourg authorities supply information on so-called code accounts. These are unregistered bank accounts. Information is necessary to determine whether capital and/or income from capital has been concealed from the Dutch Tax and Customs Administration. 

The State Secretary believes that banking secrecy is now an ‘obsolete concept’. Luxembourg belongs, together with Austria and Belgium, to the Member States of the EU with a banking secrecy. 

On 1 July 2005 the European Savings Directive (ESD) came into effect. Since then, most of the countries in the EU exchange information on taxable savings. The three EU countries with a banking secrecy (plus Switzerland as a non-EU member state) have withheld tax since 1 July 2005 on an anonymous basis on interest on savings that are held at banks in these countries.