Brussels / Geneva, 23/09/2002 (Agence Europe) - Belgian Finance Minister Didier Reynders has pleaded in favour of the EU applying direct pressure on Swiss banks to secure the conclusion of an agreement on the tax on savings between the EU and Switzerland. Questioned by the Swiss radio, Didier Reynders observed that "with the United States, Swiss banks agree to exchange information without even passing by the Confederation as these banks want to work on the American territory". The EU should, therefore, get the Swiss banks to agree to co-operate if they want to continue to work in the EU, he said. The agreement between the Swiss bank and the American Administration only concerns the investment of American shares, Swiss sources stipulate.
Last month, Switzerland proposed an agreement to the EU based on the one hand on a withholding tax at source of savings invested in Switzerland by EU residents, and, on the other, on new bilateral agreements on information exchange, if requested, in case of fraud. Commissioner Frits Bolkestein said that the EU was prepared to agree to a system of information exchange on request, but that it wanted to go beyond fraud to include tax evasion. Didier Reynders pleaded in favour of a compromise solution, based on "a transition period for withholding at source, then exchange of information on request on an administrative basis, thus rapid, and on more cases". "May we extend the cases where of information exchange must intervene? That's the crux of the debate", he remarked. You may recall that Belgium, with Luxembourg and Austria, secured a derogation only to implement automatic information exchange with the tax administrations of the other Member states seven years after entry into force of the directive on tax.
The Economy ministers of the Fifteen and the Federal Advisor Kaspar Villiger, will broach the issue at the meeting of the Joint EU/EFTA Council, on the fringe of the EcoFin Council, in Luxembourg on 8 October.