CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Switzerland Snubs Tax Deal With Austria

Switzerland Snubs Tax Deal With Austria

by Ulrika Lomas, Tax-News.com, Brussels

28 March 2012


The Swiss government has no firm plans to conclude a bilateral tax agreement with Austria to resolve the longstanding issue of undeclared bank accounts held by Austrian nationals in the Confederation’s banks despite claims to the contrary by the Austrian government.

A spokesman for the Austrian finance ministry Harald Waiglein recently confirmed that the ministry aims to ensure that a bilateral tax agreement with Switzerland enters into force on January 1, 2013. Based on the same model as the Swiss-UK, Swiss-German bilateral agreements, the accord is expected to generate around EUR1bn (USD1.3bn) in 2013, Waiglein explained, pointing out that the anticipated revenues have already been provided for in next year’s budget.

The Austrian finance ministry has claimed that a tax deal could be signed within a matter of weeks, as negotiations are already at an advanced stage.

However, despite Austria’s clear optimism, Swiss State Secretariat For Economic Affairs (SECO) Mario Tuor spokesman has stressed that before any formal negotiations can take place, with either Austria or Greece, a mandate would be required from the Federal Council.

Tuor underscored back in February that talks with Austria would only be conducted once the agreements with Germany and the UK are in force.

The Austrian government estimates that between EUR12bn and EUR20bn in untaxed deposits are held in Swiss banks. A tax on the undeclared money is expected to yield around EUR1bn for the state in 2013, and a further EUR50m annually thereafter.

TAGS: tax | offshore confidentiality | tax avoidance | banking | international financial centres (IFC) | offshore | agreements | offshore banking | banking secrecy | Austria | Switzerland | European Union (EU) | Europe

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »