Swiss Banking News: October 2010

28.10.2010: After the meeting between the two ministers in London on Monday, October 25, a declaration was signed by Swiss Finance Minister and UK Exchequer Secretary to the Treasury for the initiation of negotiations on tax issues between Switzerland and the United Kingdom. The agreement will expand cross-border cooperation in tax matters and improve market access for banks. Negotiations are expected to commence at the beginning of 2011.
According to the statement released by the Swiss Federal Department of Finance, the protection of bank client privacy “will be respected” and the automatic exchange of information "will no longer be an issue in relations between the two states."
The agreement contains enhanced administrative assistance provisions, to prevent avoidance of the withholding tax. This means that UK authorities may submit a request for administrative assistance which includes the name of the client, “but not necessarily the name of the bank.”
Similar agreement between Germany and Switzerland is also under negotiation.