BERN, SWITZERLAND – The lower house of the Swiss parliament Wednesday gave its blessing to a new US-Swiss tax treaty that calls for Switzerland to provide blocks of data to the US on clients suspected of not just fiscal fraud, but of tax evasion. In a 116-51 vote a large majority backed the treaty, but a final vote was adjourned until Monday, after several right-wing UDC proposed amendments are debated.
The treaty would allow the US to make a request for judicial assistance without supply the names and addresses of the US residents suspected of offshore tax evasion if there is clear evidence that a bank or its employees are suspected of encouraging such evasion or fraud.
In all other cases, bulk requests will not be accepted, as in the past, and the names and addresses of those responsible for accounts under suspicion will be required.
Philipp Mueller, speaking for the commission that examined the treaty for the lower house, told the lawmakers that backing the treaty would allow negotiations to go ahead with the US over 11 banks under suspicion by the US Justice Department of helping US-based clients evade American taxes.
The UDC has fought the treaty, arguing that the treaty unfairly gives concessions to the US that other nations are not provided, and that it weakens bank secrecy. ATS news agency reports that the UDC also argued against the treaty Wednesday because it does not provide a global solution.
The arguments against the US being treated separately were also supported by some Greens. The Socialists are looking to an agreement with the European Union that could in the end provide the same kind of grouped requests. And politicians in the centre rested pragmatic, saying that while the US hardly has an unblemished record itself when it comes to offshore accounts, some concessions are necessary.
Myret Zaki, assistant managing editor of Bilan, was outspoken on Swiss television Wednesday evening, voicing the sentiment of many in the political and business community that no matter whether the treaty is supported or not, the driving force behind it is commercial and not judicial, with the US seeking to expand its share of the market dominated by Swiss banks.
BERN, SWITZERLAND – Indian President Pratibha Devisingh Patil’s two-day visit to Switzerland that began Monday has already resulted in a number of initiatives, including a request by India for Switzerland’s support for an Indian seat on the UN Security Council as well as a fiscal agreement, and 11 new joint scientific research programmes.
Switzerland is the seventh most important importer of Indian goods and services, and trade between the two countries is CHF3.6 billion, with a 180 percent increase in the past decade. The trade surplus is CHF1.6b in Switzerland’s favour. Swiss exports to India rose by 21 percent in the first six months of 2011 while Indian exports to Switzerland rose by 31 percent.
Swiss direct investment in India in 2009, says the Swiss National Bank, was CHF3.3b.
The number of Indian tourists in Switzerland in 2009 rose by 21 percent.
Canton’s S&P financial rating up
Generous amnesty could bring in more revenues
Geneva, Switzerland: partly cloudy skies for those who fail to pay taxes
Geneva, Switzerland (GenevaLunch) – Geneva’s rating by Standard & Poor’s has risen from A+/stable to AA-/stable, the Tribune de Geneve reported Thursday 23 September, good news for taxpayers, but the bigger tax news came late Thursday night when the cantonal parliament voted in favour of a tax amnesty that would allow a 70 percent reduction in taxes that should have been filed in 2009 if they are filed by the end of 2011.
There are two catches, with the first a legal requirement for citizens to be allowed vote on the matter. The second is that some deputies, including the canton’s financial boss, David Hiler, believe the law flies in the face of Swiss law because the reductions are greater than those allowed by federal law.
The canton has received CHF133 million in amnesty revenues since the start of 2010, the Tribune quotes Green party member Sophie Forster Carbonnier as saying.
Updated 20 March 07:15 Bern, Switzerland (GenevaLunch) - In a short, terse message, the Swiss federal government Thursday evening announced that the United States has dropped its request for administrative assistance in the case of UBS, Switzerland’s largest bank. The extraordinary message is linked to a request for help with 252 UBS clients’ accounts, made in July 2008, which has caused a political uproar in Switzerland and been linked to tense relations with the US in the past eight months. No reason was given for the US dropping its request, nor is there any mention of a related civil case where a US court has asked for information on an additional 52,000 accounts. The New York Times 18 March reported that the US was extending its inquiry into UBS in the civil case, citing unnamed sources it referred to as “persons briefed on the matter.” Swiss federal statement in its entirety:
Bern, Switzerland (GenevaLunch) – Relations between Switzerland and Germany, already tense over the issue of banking secrecy and German taxpayers, appear to be worsening despite Switzerland’s announcement last week that it would relax its strict interpretation of the country’s law covering secrecy and fiscal information exchanges.
Updated 19:40 Bern, Switzerland (GenevaLunch) – The Swiss government Friday noon announced that it will adopt the OECD standard on administrative assistance in tax matters, which is part of the OECD’s Model Tax Convention. As a result Switzerland will exchange information with other governments in individual cases where “a specific and justified request has been made” for any form of tax offense. Accepting the standard will require renegotiating existing bilateral treaties. Requests from other governments, made according to the standard, will be honoured once new treaties go into effect.
Ed. note: it was widely reported Friday that Switzerland has agreed to assist other governments in cases of tax evasion, not just fraud. While this may be the result of the 13 March announcement, Switzerland specifically states that it intends to adopt the convention “in accordance with Art. 26 of the OECD Model Tax Convention.”
