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Hans-Rudolf Merz, Swiss finance minister, says the stolen bank data dispute must not be allowed to escalate

Bern, Switzerland (GenevaLunch) - The Swiss Federal Council says it will insist that any discussion about bank data stolen from Swiss banks and offered to Germany must take place during negotiations for a double taxation agreement. Switzerland has initialed 18 of these with other countries since March 2009 and it is in the process of negotiating one with Germany. Bern said in a statement Wednesday afternoon 3 February that it is cannot accept the argument that stolen data should be used to boost tax revenues.

“In its meeting today, the Federal Council expressed its astonishment at the German government’s indication of its readiness to take up the offer to obtain data on clients of a Swiss bank. Recently there has been an increase in the theft of Swiss bank client data which is subsequently sold abroad. This is a criminal offence in Switzerland.

“It violates public policy and the principle of good faith, and strains relations between constitutional states. The Federal Council rejects this type of data acquisition to increase the tax base.”

Germany is Switzerland’s largest trading partner. The council insists that the two countries traditionally enjoy good relations and that because of this, Switzerland wants to resolve the issue of the stolen data and it wants to give Germany a “guarantee” that it will provide assistance in the future.

It made one of its clearest statements to date about its intentions to work more closely with other governments. The “Federal Council reiterated its stance that it was not in the interests of Switzerland to attract undeclared funds from overseas. In March 2009, the Federal Council took the decision to facilitate administrative assistance in tax matters and, in relation to foreign countries, to remove the distinction between tax fraud and tax evasion and to provide administrative and legal assistance in the case of tax offences.”

TSR reports that several other countries have expressed interest in the data, based on media stories mainly from The Netherlands and Austria.

Links to other sites: Le Temps (Fre), Reuters wrapup