Top Swiss court rejects Russian request for administrative tax assistance

There is currently no reason to transmit banking information to the Russian Federation, the Swiss Federal Court has ruled. Keystone-SDA

There is currently no reason to transmit banking information to the Russian Federation, the Swiss Federal Court has ruled, upholding the appeal of people involved in a request from Moscow for administrative assistance in tax matters.

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Russia wanted to obtain information on bank accounts held in Switzerland by a Russian company whose beneficial owners had ties to Ukraine in part. The request dates back to 2018.

A year later the Federal Tax Administration granted assistance. This decision was later upheld by the Federal Administrative Court three days before the Russian invasion of Ukraine on February 24, 2022.

Called to rule, the Federal Court decided to suspend the proceedings in view of the measures and sanctions taken against Moscow. Given the lack of positive developments, consideration of the file was resumed in November 2023.

+ Russia suspends tax treaties with Switzerland and other ‘unfriendly states’

In a ruling published on Friday, the second public law court of the Federal Court upheld the appeal of the company’s owners. The decision is based on a clause in the double taxation agreement in force between Switzerland and Russia, which allows for a refusal to provide information, the disclosure of which would be contrary to public policy.

In the case at hand, since the aggression against Ukraine, the Russia is no longer a member of the Council of Europe or a party to the European Convention on Human Rights. Moreover, it has been suspended from the United Nations Human Rights Council.

Under these conditions, it cannot be ruled out that Russia’s legislative arsenal will be used to restrict the exercise of human rights. Following up on Moscow’s request for administrative assistance would not provide the necessary guarantees, especially since the requested information also concerns Ukrainian citizens, the judges said.

The refusal pronounced on Friday by the Federal Court does not prevent Russia from submitting a new request for assistance in the future. This will be examined on a case-by-case basis, the court said.

Translated from Italian by DeepL/ts

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