Swiss Federal Tribunal, Bern

Updated 14:00  Bern, Switzerland (GenevaLunch) – The Swiss cabinet has agreed to allow up to five additional but temporary posts for Federal Administrative Tribunal judges, to allow the high court to handle a sudden increase in legal cases likely to arise in relation to UBS client names requested by US tax authorities.

Bern said Friday 18 September that it expects some 500 appeals by the end of the year in cases where the Swiss finance ministry agrees to provide judicial assistance to the IRS, the US tax authority. The request for assistance are being made by the IRS as par of a 31 August agreement between Switzerland and the US.

More cases will be filed in 2010 but the number will probably reflect the outcome of the earlier cases, Bern notes. A spokesman for the finance department told GenevaLunch that it is impossible to know for now how many cases will come before the court, and thus the high court will need flexibility to deal with the demand.

Switzerland has agreed to provide assistance in identifying possible cases of tax fraud on the part of US citizens in what is estimated to be 4,450 cases, and it has 360 days in which to do so. Switzerland must comply with the deadline or it risks negotiating a new treaty, and/or more requests for judicial assistance.

The proposal to add the judges’ seats comes from the Judicial Affairs Commission of the lower house of parliament and covers a two-year period.

The two countries have initialed a new double taxation treaty and are expected to sign it in the near future.

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