The Swiss Federal Council has adopted the administrative assistance ordinance governing the implementation of administrative assistance provisions contained in either new or revised double taxation agreements (DTAs) in accordance with the Organization for Economic Cooperation and Development’s (OECD) standard.
The federal administration states that: “The ordinance on the provision of administrative assistance in accordance with DTAs governs the requirements for providing and implementing administrative assistance. If a country submits a request for administrative assistance on the basis of a DTA concluded with Switzerland, then the federal tax administration (FTA) will conduct a preliminary examination.”
It adds: “The prerequisite for the request is that it is in line with the principle of good faith. Requests for administrative assistance will be rejected if they are based on information which was obtained or forwarded due to actions which are punishable under Swiss law.”
According to the administration, another core requirement mentioned in the ordinance is the provision of detailed information to clearly identify both the individual concerned and the holder of the information. Emphasizing that Switzerland will not provide administrative assistance in the case of fishing expeditions, the administration notes that the procedural rights of those concerned will in any case remain fully safeguarded and that those concerned may file an appeal with the federal administrative court against the FTA conclusive decrees, upon which the provision of administrative assistance is based and which determine the extent of the information to be provided.
The ordinance will apply to all administrative assistance requests within the scope of new or revised DTAs entering into force after the enactment of the ordinance. In the case of existing DTAs that have not been revised after the enactment of the ordinance, existing procedural regulations will apply.
The administrative assistance ordinance is due to enter into force on October 1, 2010, to be replaced as swiftly as possible by an administrative assistance act, which is currently being drawn up.
On March 13, 2009, the Swiss Federal Council took the decision to adopt the standard set out in article 26 of the OECD Model Convention with respect to international administrative assistance in tax matters. Switzerland has since negotiated new DTAs or correspondingly revised DTAs with over two dozen states.
The federal administration states that: “The ordinance on the provision of administrative assistance in accordance with DTAs governs the requirements for providing and implementing administrative assistance. If a country submits a request for administrative assistance on the basis of a DTA concluded with Switzerland, then the federal tax administration (FTA) will conduct a preliminary examination.”
It adds: “The prerequisite for the request is that it is in line with the principle of good faith. Requests for administrative assistance will be rejected if they are based on information which was obtained or forwarded due to actions which are punishable under Swiss law.”
According to the administration, another core requirement mentioned in the ordinance is the provision of detailed information to clearly identify both the individual concerned and the holder of the information. Emphasizing that Switzerland will not provide administrative assistance in the case of fishing expeditions, the administration notes that the procedural rights of those concerned will in any case remain fully safeguarded and that those concerned may file an appeal with the federal administrative court against the FTA conclusive decrees, upon which the provision of administrative assistance is based and which determine the extent of the information to be provided.
The ordinance will apply to all administrative assistance requests within the scope of new or revised DTAs entering into force after the enactment of the ordinance. In the case of existing DTAs that have not been revised after the enactment of the ordinance, existing procedural regulations will apply.
The administrative assistance ordinance is due to enter into force on October 1, 2010, to be replaced as swiftly as possible by an administrative assistance act, which is currently being drawn up.
On March 13, 2009, the Swiss Federal Council took the decision to adopt the standard set out in article 26 of the OECD Model Convention with respect to international administrative assistance in tax matters. Switzerland has since negotiated new DTAs or correspondingly revised DTAs with over two dozen states.
