Swiss Economy Minister Says EU Should Back Withholding Tax Proposal

by Ulrika Lomas, Tax-News.com, Brussels

05 November 2001

The Swiss Economy Minister, Pascal Couchepin said last week that the European Union should welcome his country's offer to impose a withholding tax on the interest of non-resident savings accounts, despite the fact that the EU would prefer Switzerland to agree to information exchange proposals.

'For the first time in the history of civilisation, a country which is not under colonial rule of another country is offering to raise taxation freely for other countries,' he observed.

Switzerland is strongly resistant to the information exchange proposals being posited by the EU, as it is keen to protect its reputation for banking secrecy. Mr Couchepin argues that as the stated aim of the information sharing initiative is to reclaim unpaid tax, rather than to fish for financial information, a withholding tax should suffice.

'If we find a way of giving the EU countries the tax on these investments we will satisfy the legitimate interests of the EU,' he claimed. The issue is tabled for further discussion on Tuesday, when finance and economy ministers from the EU and the European Free Trade Association are set to meet.

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