Switzerland and Germany's finance ministers on Wednesday agreed to open talks next year to resolve a bitter row over tax evasion and Swiss banking secrecy.Germany has been one of the fiercest European critics of its Alpine neighbour's banking secrecy rules in recent years, complaining that it encouraged German taxpayers to hide money in Swiss bank accounts.
ZURICH (Reuters) - The Swiss government agreed on Wednesday to create a legal basis that will allow its banks to settle investigations by U.S. authorities into their role in helping wealthy Americans evade billions of dollars in tax.
Switzerland — long famous for storing money and not asking any questions — has been beefing up scrutiny on banks enjoying shelter in the Alpine paradise's lax regulatory structure, Businessweek reports. And foreign private banks in Switzerland are now heading for the exits.
The Swiss and German governments are to sign an agreement early next month putting an end to a long-running dispute over tax evasion by Germans who keep secret Swiss bank accounts, a report said on Sunday.According to the Sonntagszeitung newspaper, the two sides will ink an agreement on August 10 which will allow for income from dividends and interest on funds deposited in Swiss accounts to be taxed, the newspaper said.Although the exact tax rate has still to be finalised it is likely to amount to around 25-26 percent, the report added.
Swiss banks will pay two billion francs (1.91 billion euros, $2.6 billion) to German tax authorities under a deal reached Wednesday between Bern and Berlin to end a long-standing tax evasion and banking secrecy dispute.The deal, which is expected to be signed in coming weeks, could snare up to just short of 1,000 tax cheats over two years.Swiss Finance Minister Eveline Widmer-Schlumpf said the deal "creates legal certainty and will strengthen the competitiveness and the reputation of Switzerland as a financial centre in the long run."
Germany announced Monday that it may buy the names of suspected tax-dodgers from a Swiss whistle-blower, leaving the two countries on a collision course over Switzerland’s prized banking secrecy regulations.