Taxand's take on Switzerland’s actions to eliminate itself from the G20 ‘grey list’
Kurt Wild, a certified Swiss tax expert and partner with Tax Partner AG, the Swiss member of Taxand, gives his comments on Switzerland's reasons for removing itself from the list of countries not meeting international taxation standards. "This relaxation of banking secrecy is likely to result in the outflow of funds from the Swiss banks." Read on for Taxand's take.
"Switzerland's swift actions, in signing the 12th treaty, means that the country now fulfills the conditions of the OECD to be taken off the 'grey list'. The removal from the list will begin to ease the current pressure being felt by Switzerland regarding its cooperation on tax evasion. However, this will not draw a line under the issue, as Switzerland is expected to come under further pressure from key EU member states as they continue to look at securing an automatic exchange of information with Switzerland, following the US lead."
"At present, it is unclear whether the Swiss parliament will ratify the treaties as they could be subject to an optional referendum."
"It appears that Switzerland has got a raw deal in all of this as it does not appear to have received any concessions for the relaxation of banking secrecy following the signing of the treaties. One might expect that other offshore centers in the EU would also be forced to follow the OECD standards and that the treaty signing might facilitate enhanced market access for Swiss banks in foreign markets."
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