According to Switzerland’s Finance Minister Eveline Widmer-Schlumpf, a withholding tax would be the “right instrument” to resolve remaining tax issues with the US.
Indeed, the Swiss Finance Minister maintained that introducing such a levy would serve to address the matter of wealth held by US citizens in the Confederation in one stroke, even though such negotiations have not as yet been touched upon.
By introducing a withholding tax, banks in Switzerland could impose a levy on foreign account holders, and subsequently transfer the revenues derived to the Swiss authorities. Maintaining banking secrecy, tax authorities in Switzerland would then pass all revenues to the individual’s country of origin, without having to divulge details.
Switzerland is currently in talks with both the UK and Germany regarding the conclusion of such a bilateral agreement. Indeed, Finance Minister Widmer-Schlumpf confirmed that Switzerland is eager to conclude talks with Germany this summer.
Commenting on recent insinuations from Oswald Grübel, Chief Executive Officer of the Swiss banking giant UBS, that certain departments would be relocated abroad if tougher banking regulations are imposed on big banks in Switzerland, Widmer-Schlumpf maintained that banks would continue to benefit from more favourable conditions in Switzerland than in any other country.
A commission, tasked by the Swiss Federal Council to examine the issue of own capital banking requirements, has put forward the idea of requiring big banks such as UBS and Credit Suisse to hold up to 19% of their own capital in future in order to secure their activities. The new provisions are due to be effective in 2018, although are yet to be approved by parliament.
Indeed, the Swiss Finance Minister maintained that introducing such a levy would serve to address the matter of wealth held by US citizens in the Confederation in one stroke, even though such negotiations have not as yet been touched upon.
By introducing a withholding tax, banks in Switzerland could impose a levy on foreign account holders, and subsequently transfer the revenues derived to the Swiss authorities. Maintaining banking secrecy, tax authorities in Switzerland would then pass all revenues to the individual’s country of origin, without having to divulge details.
Switzerland is currently in talks with both the UK and Germany regarding the conclusion of such a bilateral agreement. Indeed, Finance Minister Widmer-Schlumpf confirmed that Switzerland is eager to conclude talks with Germany this summer.
Commenting on recent insinuations from Oswald Grübel, Chief Executive Officer of the Swiss banking giant UBS, that certain departments would be relocated abroad if tougher banking regulations are imposed on big banks in Switzerland, Widmer-Schlumpf maintained that banks would continue to benefit from more favourable conditions in Switzerland than in any other country.
A commission, tasked by the Swiss Federal Council to examine the issue of own capital banking requirements, has put forward the idea of requiring big banks such as UBS and Credit Suisse to hold up to 19% of their own capital in future in order to secure their activities. The new provisions are due to be effective in 2018, although are yet to be approved by parliament.
