Page last updated at 11:39 GMT, Friday, 15 August 2008 12:39 UK

Liechtenstein signals tax reform

The Alpine state has been under pressure to relax its secrecy laws

Liechtenstein, which has been at the centre of an international row over tax evasion, has announced that it will co-operate more fully on tax matters.

It said it would offer "comprehensive co-operation" in future, but would maintain its "culture of privacy".

Other countries have complained that wealthy individuals had used Liechtenstein's secrecy laws to avoid paying tax.

It has been on an international list of "unco-operative tax havens".

The Organisation of Economic Co-operation and Development (OECD) had named Liechtenstein as one of only three states remaining on its blacklist.

"In the future, we should offer all states comprehensive co-operation if they are willing to find sensible solutions with us the for the client relationships we have built up," Prince Alois of Liechtenstein said in a statement.

He further qualified this promise by saying his country would continue to practise "a culture of privacy that goes far beyond bank client secrecy in tax matters".

"Our state is here for its citizens, not the other way around," he added.

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