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.
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