EU residents to be banned from having undeclared income in Swiss banks
The EU and Switzerland have signed a deal to stop EU residents holding undeclared income in Swiss bank accounts.
The transparency agreement will be introduced at the start of 2018, and from then on Switzerland and the EU will share information relating to the bank accounts of their respective citizens. This includes names, addresses, dates of birth and tax identification numbers.
In a statement released today, the European Commission said the aim of this “automatic exchange of information” was to bring an end to purported tax evasion by some account holders.
This new transparency should not only improve member states' ability to track down and tackle tax evaders, but it should also act as a deterrent against hiding income and assets abroad to evade taxes.The EU led the way on the automatic exchange of information, in the hope that our international partners would follow. This agreement is proof of what EU ambition and determination can achieve.
Similar agreements are currently being negotiated between the EU and Andorra, Liechtenstein, Monaco and San Marino and these are expected to be completed by the end of the year.