Swiss Banks Say Impact Of Italian Tax Amnesty 'Minimal'

by Philip Morton, Investors Offshore.com

15 March 2002

According to Swiss banks based in the Italian-speaking canton of Ticino, the impact of the Italian amnesty on tax evasion, now extended to May 15, has been minimal.

Italian Finance Minister Giulio Tremonti declared the amnesty in November 2001, and an exodus from banks in the city of Lugano in Ticino, traditionally the most popular tax haven for Italians, was predicted.

However, a study conducted by Credit Suisse First Boston revealed that a mere fraction of the SFr 400 billion estimated to have been deposited by Italians in the country's banks has been repatriated to Italy so far. UBS said recently that although 10% of the bank's Italian customers had enquired about the amnesty, far fewer had removed their money, and the Banco di Lugano announced that it has lost barely 1.7% of its capital.

The Italian tax amnesty has a while left to run, and as such it is difficult to draw definite conclusions on the overall impact for the banking sector. However, finance experts are confident that other factors such as the standard of service and the Swiss industry's long history will keep the majority of Italian customers in the country.

'It's unrealistic to assume that nobody in Italy is going to take advantage of this amnesty,' James Nason, a spokesman for the Swiss Bankers Association explained: 'But we're convinced that people don't just bring their money to Switzerland to avoid paying tax. There are a lot of other attractions.'

Recommended