The deal makes it more difficult for Germans to evade taxes |
The days
when German citizens could evade taxes by hiding their money under the
protection of Swiss banking secrecy laws are now numbered. Under a new agreement,
Berlin can acquire such information from Bern.
Germany and
Switzerland reached a deal Wednesday to end their long-standing row over German
citizens stashing assets in Swiss banks in order to avoid paying taxes at home.
Under the
agreement, the Swiss government is set to pay Germany 1.91 billion euros ($2.6
billion). The money will act as a down payment on tax revenue Berlin claims it
has lost as a result of the tax evasion.
German tax
evaders, meanwhile, will be offered the chance to make anonymous lump sum
payments at a rate of between 19 and 34 percent of the assets they stored in
Switzerland. The voluntary payments from tax evaders would offset the 1.91
billion euros, which could then be refunded to Swiss banks.
Swiss
Finance Minister Eveline Widmer-Schlumpf said the deal "creates legal
certainty and will strengthen the competitiveness of Switzerland in the long
run."
Information
accessible
Swiss banks maintain strict secrecy laws |
In the
future, Berlin will be able to request information from the Swiss government on
suspected tax cheaters. The Swiss Finance Ministry expects the number of
requests to reach between 750 and 999 over the next two years.
In July
2010, Germany had to purchase such information for 2.5 million euros.
Switzerland condemned the move, claiming the purchased information was stolen
and therefore violated its banking secrecy laws.
The deal,
likely to take effect in 2013, would end
the dispute over the purchased bank data. In exchange, Germany has agreed to
drop plans to prosecute bank employees who helped Germans evade taxes.
"Germany
no longer sees any reason for the purchase of stolen bank client data,"
said the Swiss Finance Ministry. "Switzerland undertakes to waive criminal
prosecution of persons on account of involvement in illegally acquiring bank
data."
Author:
Spencer Kimball (AFP, dpa)
Editor: Martin Kuebler
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