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.
SBA CEO Urs P Roth
Zurich, Switzerland (GenevaLunch) – EU citizens with bank accounts in Switzerland will pay a withholding tax on income from all investments, not just on savings income as at present, if a proposal from the Swiss Bankers Association (SBA) goes ahead. The group, at its annual meeting in Zurich 17 September suggested that the money collected would be transferred to the respective countries’ tax authorities without disclosing the name of the bank customer. The SBA proposal would extend withholding tax on EU citizens to include dividend income generated by stocks and mutual funds, as well as capital gains.
Switzerland has levied a withholding tax on its own and EU citizens since 2005, but it covers only income from certain types of investment, principally from bonds.
