UK and Switzerland Nearing Tax Concession
The UK could soon follow Germany in signing a tax deal with Switzerland in order to reduce the occurrence of cross border tax evasion while allowing Switzerland to maintain its bank confidentiality regulations.
The president of the Swiss Bankers Association Patrick Odier has revealed that Swiss and UK tax authorities are only a few weeks away from concluding negotiations over a new cooperative tax deal.
Under proposals raised in the negotiations, Swiss banks would be responsible for applying a flat rate withholding tax on gains made on capitals and savings on bank accounts held by UK nationals. The tax would be charged at a rate set to match the UK’s domestic tax obligations. In order to maintain Switzerland’s vaunted bank confidentiality rules, Swiss banks will transfer the full amount of the tax payment without disclosing the identity of their UK clients.
News of the agreement’s progress comes hot on the heels of the recent announcement that German and Swiss tax authorities have already completed negotiations on their tax agreement, which will make Swiss banks responsible for collecting appropriate tax payments from their clients in the future.
The progress made in the tax deal is thought to be a positive signal for other European nations. In particular, France and Italy have both previously displayed great interest in reaching a similar productive tax agreement with Switzerland.
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