Swiss Government Finally Offers Support to United States’ Efforts to Stop International Tax Evasion
Under pressure from the United States and a variety of European Countries, Switzerland has finally agreed to give up its status as a reliable tax haven to wealthy US Citizens and residents of other countries by furnishing information to the US Government regarding financial accounts held by American Citizens. Swiss resistance has maintained for years until the Department of Justice began aggressively indicting Swiss bank officials last year for assisting American Citizens in evading US tax and reporting laws.
The Swiss Government is authorizing banks to furnish broad financial account details of US Citizens and Green Card Holders and has instructed banks to pay fines assessed by the IRS for aiding and abetting evasion in previous years. In return, the United States Department of Justice will agree to refrain from indicting more Swiss banks. While the Swiss Government does not intend to bear the financial burden of the fines, it may be willing to make advance payments to the IRS on behalf of its financial institutions to be repaid by said institutions in the future.
The exact details to be furnished by Swiss banks are yet to be determined upon ratification of an official information sharing treaty. Make sure to visit our blog regularly for updates on Switzerland’s compliance with US FATCA mandates.