Switzerland prepares for automatic exchange of tax information with the EU

27.11.2013

The Swiss Minister of Finance Eveline Widmer - Shlampf announces that the Confederation negotiates actively with the EU about signing a framework agreement on the automatic exchange of tax information. In her speech at the conference, organized by the Financial Academy, Widmer- Shlampf laid out that Switzerland intended to move towards disclosure of tax information to the authorities of the EU countries to strengthen its credibility as a financial center.

Currently there are two cases scenario. In the first option, Switzerland is not waiting for new tax information exchange standards which were adopted at the Global Forum on tax transparency coming into force. Instead of that the Confederation provides information on undeclared assets on its territory with individual EU countries according to existing agreements. As for the second option, then the Confederation will exchange tax information with all EU countries. The second option is preferable, according to the Minister of Finance of Switzerland, because half of the clients of Swiss banks are residents of the EU. This step will influence positively impact on the reputation of the jurisdiction in the eyes of the OECD, which believes that Switzerland does not meet required standards of tax transparency.

Based on: http://www.admin.ch

Expert’s opinion

They can not say that the banking crisis in Switzerland went too far, it just adjusts to new living conditions. Everyone survives as he can. A bird in the hand is worth two in the bush and it is much better than to pay fines for open accounts…

Switzerland understands than there is nothing left to wait for and that is why the Confederation initiates signing different agreements. On the one hand it will influence on her reputation in the eye of a client. On the other hand it is better to pay fines and sleep peacefully.

The only relief is the European binding. Currently agreements on tax information exchange affect on citizens of the European Union.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)