Talks to begin on tax data exchange

Finance Minister Widmer-Schlumpf explaining the government's position on the automatic exchange of tax information during a news conference in June Keystone

The Swiss cabinet has agreed the mandate for negotiations with the European Union, the United States and selected other countries for introducing the global standard for the automatic exchange of information on tax matters. 

The decision, announced on Wednesday, is the latest step in a political procedure to lift banking secrecy rules for taxpayers from outside Switzerland and prevent the country being blacklisted by the Organisation for Economic Co-operation and Development (OECD). 

Talks with the 28-nation EU and with Washington are a priority, according to the finance ministryExternal link. No dates for the negotiations were given. 

The ministry says the aim is to create a level playing field between financial centres, respecting the principle of reciprocity and data protection rules. 

Access of Swiss banks to international markets and a settling of controversial tax evasion practices in the past are also tabled. 

However, domestic bank client confidentiality rules will not be affected, according to the statement. 

Wednesday’s decision follows consultations between the finance ministry, parliamentary committees and the country’s 26 cantons over the past few months. 

Letter to Global Forum 

The government reaffirms it welcomes new international standards adopted by the OECD in July and confirmed by finance ministers from the world’s most important nations. 

The finance ministry is to confirm its intention to introduce the legal basis for the automatic exchange of information in a letter to the Global Forum on Transparency and Exchange for Tax PurposesExternal link. 

The first exchange of information could take place in 2018, according to officials.