Brussels, 12/09/2011 (Agence Europe) - The full-scale charm offensive by Switzerland that began last year to win over its EU partners and get them to sign bilateral savings tax deals that allow savers to keep their identity hidden from the authorities (savers living in the EU but with bank accounts in Switzerland) seems to be paying off.
After deals were agreed last year with Germany and the United Kingdom in return for a one-off payment to both countries in full discharge of debt, a payment raised by taxing German and British residents who have undeclared bank accounts in Switzerland, the French parliament has asked the government to carry out research by December 2011 on the pros and cons of a Swiss payment to discharge tax liabilities with regard to tackling tax fraud. Countries like Italy and Greece have been approached by Switzerland to sign similar agreements, but have not yet responded, although preliminary talks are under way with Greece.
The agreement signed with Germany on 10 August 2011 includes taxation at source of between 19% and 34% of undeclared savings in Swiss bank accounts, along with a one-off payment of 26% to cover capital gains in the past. The 24 August 2011 deal with the United Kingdom is similar, as are the rates of between 27% and 48% on future interest. Swiss banks will have to pay €1.7 billion to Germany and over €415 million to the UK as an initial payment. The agreements are due to come into force in 2013 and will raise some €30 billion in tax revenue for Germany, and the €7 billion for the UK.
Given the financial benefits of such deals for member states signing up to them (€2 billion a year for Germany, for example) at a time when they are counting their pennies, it is likely that other countries approached by Switzerland - France and Greece, for example - will express an interest. The deals are controversial, however, because they could jeopardise the work by the European Commission to introduce a compulsory and automatic exchange of information system among the member states as part of its updating of the EU savings tax directive. Countries like Luxembourg have refused to agree to an automatic exchange of information about bank accounts on the grounds that Switzerland has anonymous bank accounts and should also be required to join an automatic exchange of information system equivalent to the one in force in the EU. The bilateral anonymous bank account deals will no doubt be used as an excuse for continuing to block the negotiations on updating the savings tax directive. The next few weeks will tell whether Luxembourg will decide on this approach. (F.G./transl.fl)