Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Bern pushes 'global standard' for bank data

Share this article

Bern pushes 'global standard' for bank data
Photo: OFCL
18:55 CEST+02:00
The Swiss federal government wants the OECD group of industrialized nations to broker a global deal on the exchange of information about people who bank their cash outside their homeland.

In a statement issued on Monday, the government reiterated its view that a "global standard" was necessary for the automatic exchange of information for taxation purposes.

Bern maintains that all the globe's offshore havens — for example, Britain's various Caribbean territories — must also fall into line to ensure a level playing field.

"The most suitable body for preparing this would be the broadly based Organization for Economic Co-operation and Development (OECD)," it said, referring to the 34-nation grouping.

The statement was issued after Swiss Finance Minister Eveline Widmer-Schlumpf met with European Union tax chief Algirdas Semeta.

The financial crisis has thrown the spotlight squarely on the issue of tax evasion, notably by EU and US citizens who bank their cash out of sight of their home countries' authorities.
   
Swiss lawmakers are 
Tuesday scheduled to vote on a controversial deal with Washington that would give the Alpine country's banks legal closure in probes of their alleged complicity with tax evasion, in exchange for their paying potentially massive fines.

Switzerland has also repeatedly locked horns with the EU over the tax issue.

"Switzerland expects the EU to dispense with defensive measures against Switzerland and to be fair," the federal government said.

Switzerland, staunchly outside the 27-nation EU, is surrounded by the bloc's members and has tight economic ties with them.

Its financial sector is a traditional refuge for foreign depositors in tough times, and with the crisis having put tax havens into sharp focus, Switzerland has fought to defend its long-cherished principle of secrecy by giving ground in some areas but declining to allow the automatic handover of account details.

The EU has asked Switzerland to open talks on updating a 2005 deal on taxing the savings of EU citizens held in the banks in the Alpine nation.

"Switzerland has been willing to discuss such an amendment of the agreement since 2009, but it expects the EU to maintain access to its markets for financial services," Bern said.

Switzerland taxes the interest on savings of such depositors at a rate of 35 percent — raised from the original 20 percent in 2011 — and pays the funds anonymously back to member states.
   
Only interest in the purest sense is taxed, but Brussels wants to widen the 
net to cover dividends from shares and life insurance policies, as well as capital gains from the sale of shares and real estate.
   
The issue has sparked bitter debate within the EU itself, though resistance 
by traditional havens Austria and Luxembourg to the automatic sharing of bank records has been chipped away, five years after other member states approved new rules.

Get notified about breaking news on The Local

Share this article

Advertisement
Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement