The European Union has called on Switzerland to agree to swift and unconditional negotiations on the introduction of an automatic exchange of banking information – doing away with banking secrecy to crack down on tax evasion by foreign asset holders.
«It is widely accepted that the era of banking secrecy is over. Resisting the clear international trends for more transparency and information sharing is pointless,» EU tax commissioner Algirdas Semeta told journalists following talks with Swiss finance minister, Eveline Widmer-Schlumpf, in the Bern on Monday.
Semeta said Switzerland could gain trust and international acceptance if it agreed to stronger tax rules based on an automatic exchange of information.
«We can reinforce the strong relationships between Switzerland and the EU by aligning our strategies to fight against tax evaders,» he said.
Brussels was hoping that Switzerland will give it a high priority and act fast he added.
Semeta rejected suggestions that the tax talks could be linked with other current issues, notably the Swiss financial industry’s concerns about losing access to the EU market.
Conditions
Finance Minister Widmer-Schlumpf, for her part, reiterated that the Swiss government was interested in talks on an extension of a bilateral accord on a tax on savings with the EU.
She was adamant that non-EU member Switzerland was seeking non-discriminatory access for Swiss banks and insurance companies to the market of the 27-nation bloc.
She also stressed the need to settle tax issues of the past with the EU.
Widmer-Schlumpf said Switzerland wanted to actively promote the creation of a global banking standard for transparency. It was crucial for Switzerland to have a level playing field in the finance industry within and beyond the EU.
Over the next three months the finance ministry is to examine an offer by Brussels to open formal negotiations.
OECD
Last week the Swiss cabinet decided to work with the Organisation for Economic Co-operation and Development (OECD) towards global rules to crack down on tax dodgers – further easing banking secrecy concerning foreign clients of Swiss banks.
A government-appointed commission of experts, led by economist Aymo Brunetti, also recommended that Switzerland should officially scrap banking secrecy regulations for EU clients.
However, the cabinet insisted an automatic exchange of banking data is not the only option: it hopes to continue the system whereby Switzerland imposes a withholding tax.
The finance ministry will prepare a report by autumn defining a detailed government strategy for the financial market and the future of banking secrecy.