Yesterday **Luxembourg** signed a new tax cooperation agreement with **France** and today signed a protocol to its double taxation convention with **Denmark**. The protocol, which allows exchange of bank information for tax purposes, brings the convention up to the OECD standard. Luxembourg signed a similar protocol with the **Netherlands**, on 29 May 2009; Last month it also signed agreements with the **United States** and **Bahrain**, and announced its intention to enter into negotiations with Liechtenstein to conclude a convention on the avoidance of double taxation.
Luxembourg Budget Minister Luc Frieden said that by the end of 2009 he hopes the Grand Duchy would have signed 15 double-taxation deals that meet OECD standards on information exchange. Luxembourg is on the so-called “grey list” developed by the OECD in its drive against cross-border tax evasion, which means it must ink at least 12 such agreements to be removed.
On the French deal, French Economy Minister Christine Lagarde told reporters, *”We welcome this signature with the enthusiasm that goes with implementing the G20’s decisions.”* Minister Frieden, who travelled to Paris to sign the accord, said the deal would improve relations with its much larger neighbour. *”With this agreement, we consolidate the friendship between France and Luxembourg and we eliminate the only dark patch that existed in our relations in recent months.”*
Luxembourg withdrew its reservation to the OECD standard on exchange of information in March 2009, and negotiations are underway with countries to update the exchange of information provisions in Luxembourg’s bilateral treaties. In addition to France, Denmark, the Netherlands, Bahrain and the United States, Luxembourg’s tax agreement with **India** also meets the OECD standard on exchange of information. Today, Angel Gurria, OECD Secretary General welcomed the recent signings, saying “*This is very good news. These agreements with six of its key economic partners show that Luxembourg has joined the international drive to combat tax havens and is moving swiftly towards substantial implementation of the OECD standard.”*