Switzerland gears up for automatic exchange of tax information

Under global pressure, Switzerland on Wednesday began a process to put in place a framework for automatic exchange of information on tax matters with the US, the EU and other “select countries”.

In the initial phase, these countries will include those with which Switzerland has “close economic and political ties”, but it is not yet clear whether these nations include India.

For determining these “select” countries in the initial phase, the Swiss Government will also take into account whether such jurisdictions provide their taxpayers (having accounts in Swiss banks) with “sufficient scope for regularisation”.

Switzerland has been perceived for long as a safe haven for alleged illicit funds and has been facing global pressure to share account and client details of its banks.

Taking forward a process to implement a new global standard prepared by the Paris-based OECD and approved by the G-20 last month, the Swiss Government’s highest decision-making body, on Wednesday adopted “definitive negotiation mandates for introducing the new global standard for automatic exchange of information in tax matters with partner states”.