Switzerland, Mexico Initial Revised Double Tax Agreement

by Ulrika Lomas, Tax-News.com, Brussels

18 June 2009

Switzerland and Mexico have agreed at a technical level to the extension of administrative assistance in tax matters under Art. 26 of the OECD Model Convention.

The tax authorities of both states have initialled the revised double taxation agreement, in accordance with the key points agreed by the Swiss Federal Council. Mexico is the fifth country to initial a Double Tax Agreement with Switzerland with the extended administrative assistance clause. Switzerland has recently concluded Tax Information Exchange Agreements with Denmark, Norway and France.

The initialled double taxation agreement (DTA) with Mexico is to be submitted to the cantons and business associations concerned for their comments. It will then be submitted to the Federal Council, which will decide on the authorisation for signing. After the DTA has been signed, the Federal Assembly must approve it before it can come into force.

When it enters into force the agreement will allow tax authorities from the respective countries to request information in tax matters where there is concrete evidence of the perpetration of a tax crime.

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