CRS & Swiss Banks (2019 Reporting)
3.1 Million Swiss Accounts Were Exposed to 75 Countries
Just in case you thought your Swiss accounts were safe from the IRS…
A recent press release from the Swiss Government cemented that fact with a recent press release. The short of it is, the Swiss Financial Institutions have shared data for more than 3.1 million accounts.
Swiss Exchange of Information with 75 Countries
As provided by the Federal Council:
Following the first exchange last year, in which no technical problems were encountered, this year the AEOI involved a total of 75 countries.
With 63 of these countries, the exchange of information was reciprocal. In the case of 12 countries, Switzerland received information but did not provide any, either because those countries do not yet meet the international requirements on confidentiality and data security (Belize, Bulgaria, Costa Rica, Curaçao, Montserrat, Romania, Saint Vincent and the Grenadines, Cyprus) or because they chose not to receive data (Bermuda, British Virgin Islands, Cayman Islands, Turks and Caicos Islands).
Currently, around 7,500 reporting financial institutions (banks, trusts, insurers, etc.) are registered with the FTA.
These institutions collected the data and transferred it to the FTA. The FTA sent information on around 3.1 million financial accounts to the partner states and received information on around 2.4 million from them.
The largest exchange was with Germany (in both directions), as was the case in the previous year. The FTA cannot provide any information on the amount of financial assets. Switzerland has committed itself to adopting the global standard for the international automatic exchange of information in tax matters.
The legal basis for the implementation of the AEOI in Switzerland came into force on 1 January 2017. Identification, account and financial information is exchanged, including name, address, state of residence and tax identification number, as well information concerning the reporting financial institution, account balance and capital income.
The exchanged information allows the cantonal tax authorities to verify whether taxpayers have correctly declared their financial accounts abroad in their tax returns.
Next year, Switzerland’s network of AEOI partner states will expand further, to around 90 countries.
The OECD Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) reviews the implementation of the AEOI.
Swiss Bank Account Amnesty – About Golding & Golding, A PLC
We specialize exclusively in international tax, and specifically IRS offshore disclosure.
We have successfully represented clients in more than 1,000 streamlined and voluntary offshore disclosure submissions nationwide and in over 70-different countries. We have represented thousands of individuals and businesses with international tax problems.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.
- Learn more about the Board-Certified Tax Lawyer Specialist credential
- Learn more about the Enrolled Agent credential
- Learn more about Golding & Golding’s Case Accomplishments
- Learn more about Golding & Golding Testimonials from prior clients
Considering Filing under IRS Amnesty Procedures?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in offshore tax and reporting amnesty. Contact our firm today for assistance with getting compliant.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.