Tim found this article in German here which indicates that a court in Liechtenstein has issued a temporary injunction prohibiting the Liechtenstein Revenue Authority from transferring FATCA-related data to IRS before September 18th 2015 — prior to which the court will consider whether the US-Liechtenstein FATCA “IGA” is compatible with the Liechtenstein constitution. [See also article in Liechtensteiner Vaterland].
An English translation provided by my Austrian colleague:
Volksblatt.li Wednesday, June 10, 2015
Liechtenstein Constitutional Court grants FATCA claimants more time
“VADUZ – Two Liechtenstein financial market service providers, who brought a lawsuit against various provisions of the FATCA Law, can catch their breath. For the time being, they are given a few months more time. However, this is not a fundamental decision.
As a temporary injunction until a ruling has been handed down on their constitutional complaint, however until latest September 18, 2015, the Constitutional Court has forbidden information reported by the two claimants to the Liechtenstein Tax Authority by June 30, 2015 to be forwarded by the Tax Authority to US authorities and other agencies, particularly the IRS.
This was reported on Wednesday by the law office of Wolff, Gstöhl & Bruckschweiger in Vaduz. As attorney Karl Mumelter explained to “Volksblatt,” the grounds for the decision by the Constitutional Court were essentially that the claimants would incur a disproportionate and irreparable disadvantage if the information reported to the Liechtenstein Tax Authority were to be forwarded to US authorities before the Constitutional Court ruled on the claimants’ constitutional complaint.
Partial victory for the claimants
In February of this year the two Liechtenstein financial market service providers filed a constitutional complaint with the Liechtenstein Constitutional Court against the law of December 4, 2014 concerning implementation of the FATCA Agreement.
Their complaint seeks to have – in their opinion – unconstitutional provisions of the FATCA Law repealed. In their complaint the claimants contend that the FATCALaw contains unconstitutional references to US Tax Law, is not litigable because of its complexity, and subjects the financial market service providers to disproportionate and unforeseeable costs.
At the end of May 2015 the two claimants filed with the Constitutional Court a supplementary motion for Grant of Temporary Injunction in this matter. The decision handed down by the Constitutional Court on June 9, 2015 grants this motion. The Constitutional Court granted the temporary injunction until September 18, 2015.
As Karl Mumelter further stated, the Constitutional Court feels that the temporary nature of the relief sought ensures, on the one hand, that no disproportionate disadvantages are incurred by the claimants and that the constitutional complaint is not ultimately robbed of its effect and, on the other hand, that the public interest in swift and efficient implementation of the FATCA Agreement is upheld. “It appears the Constitutional Court will conclude the matter of the constitutional complaint by September 2015,” said Mumelter.”
Although the actual claims in this Liechtenstein lawsuit, not explicitly disclosed in the article, might/probably differ from those in the Canadian Federal Court case, this would seem to be a “first” for any court action against implementation of a FATCA IGA — in any country.
[You can go to the German article and comment via Facebook.]