Switzerland Concludes TIEA With The UK

by Ulrika Lomas, Tax-News.com, Brussels

10 July 2009

Switzerland and the United Kingdom have concluded negotiations on extending provisions within the existing double tax agreement between the two countries. The revised agreement will grant assistance in tax matters under Article 26 of the OECD Model Convention. The DTA was negotiated in accordance with the parameters decided by the Swiss Federal Council.

On March 13, 2009, the Swiss Federal Council decided that Switzerland would change policy on international cooperation in tax matters and adopt the OECD standard on administrative assistance in tax matters under Article 26 of the OECD Model Convention. The decision will permit an exchange of information on tax matters in individual cases where a specific and justified request has been made.

Following the Federal Council decision in March, the United Kingdom is the tenth country with which Switzerland has initialled a Double Tax Agreement containing the extended administrative assistance clause. Switzerland has already concluded agreements with Denmark, Luxembourg, Norway, France, Mexico, the USA, Japan, the Netherlands and Poland.

The Swiss cantons and business associations will now have the opportunity to submit their views on the convention. The Federal Council will then decide on the authorisation for signing after which the agreement will be published.

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