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Switzerland signs tax agreement with OECD
Oct 19, 2013

Switzerland has become the 58th country to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. According to the international convention Switzerland will cooperate with foreign tax authorities. But it has not committed to the automatic exchange of tax records. Further Switzerland will have to ratify its adhesion to the convention which could take as long as a year-and-a-half and which could get bogged down if it is put to a referendum.

What is Multilateral Convention on Mutual Administrative Assistance in Tax Matters?

The Multilateral Convention provides for all forms of mutual assistance: exchange on request, spontaneous, tax examinations abroad, simultaneous tax examinations and assistance in tax collection, while protecting taxpayers’ rights. It provides the option to undertake automatic exchange while requiring an agreement between the Parties interested in this form of assistance. 

With the support of the G20, automatic exchange is becoming the new international standard. 

Apart from 58 countries the following jurisdictions are also covered by the Convention through territorial extension by Denmark: the Faroe Islands and Greenland; by territorial extension by the Netherlands: Aruba, Curaçao and Sint Maarten; and by territorial extension by the United Kingdom: the Cayman Islands, Montserrat and Turks and Caicos. But Offshore centres like Luxemburg and Singapore signed the treaty in May, while principalities like Liechtenstein, Andorra and Monaco have not yet agreed to it. In addition, former British Crown dependencies like Jersey, Guernsey and the Isle of Man as well as overseas territories like Bermuda and the British Virgin Islands have not signed the convention yet.

 

 


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