SWISS TAX ADMINISTRATIVE ASSISTANCE ACT TO COME INTO FORCE

The Swiss Federal Council has recently resolved to bring the new Tax Administrative Assistance Act into force on February 1, 2013.

Consequently, group requests in accordance with the international standard will now be possible as well.

Switzerland’s Tax Administrative Assistance Act (TAAA) governs the execution of administrative assistance under double taxation agreements. Approved by parliament on September 28, 2012, the referendum deadline expired on January 17, 2013 without a referendum being called.

The existing ordinance governing the implementation of double taxation agreements will be repealed when the TAAA comes into force.

Group requests in accordance with the international standard are also permitted with the entry into force of the TAAA. Such requests require a description of the action taken by bank clients to avoid taxation and must be clearly distinct from fishing expeditions.

In accordance with the Ordinance on Administrative Assistance in the Case of Group Requests According to International Tax Agreements, group requests are admissible for information on issues from the date the law enters into force.