Hans-Rudolf Merz, Swiss president, finance minister

Bern, Switzerland (GenevaLunch) – Swiss Finance Minister Hans-Rudolf Merz has put negotiations on the new Swiss-Italian double taxation treaty on hold until further notice. The move follows a raid by Italian tax authorities on Italian branches of Swiss banks last week and rumours of Italian officials spying on their countrymen in canton Ticino, which has caused outrage in Ticino. The tax treaty was ready to be ratified by the parliament, reports Sonntagsblick in an interview 1 November.

Merz has designated  Renzo Respini, a former member of the upper house of Parliament, to be the government’s special political advisor in tax questions concerning Italy.

Merz told his Italian counterpart, Giuio Tremonti, at a meeting in Istanbul in early October that Switzerland was ready to review the existing tax treaty between the two countries, according to Sonntagsblick. Tremonti reportedly told Merz: “First I want money.”

Switzerland has re-negotiated a series of tax deals with other countries in order to be OECD compliant.

Background: “Switzerland must sign 12 tax treaties by end 2012“, 9 May 2009, GenevaLunch

Links to other sites: Le Temps, NZZ, Sonntagsblick

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