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.
Surprise at Italy's actions
Lugano, Switzerland (GenevaLunch) - Italian tax authorities raided 76 branches of Swiss banks in 22 cities around Italy, 27 October, ostensibly checking to see whether the institutions were in compliance with reporting requirements on bank operations. Federal Counsellor Pascal Couchepin said on national radio that they “were desperate measures” and suggested that the social contract between the Italian government and its citizens was in “bad shape”.
Italians who travel to Switzerland overland have been subjected to unprecedented border checks, with closed circuit cameras and police dogs at the border. The Italian finance and economy minister, Giulio Tremonti, has said that he wants to “dry up” the banks in Ticino, where it is estimated that most Italians have deposited their money.
