Negotiations with the UK and Germany are underway to impose external taxes on certain deposits held in Switzerland. The taxes would be collected by Swiss authorities and handed to other nations, whilst maintaining the secrecy which contributes to Switzerland’s attractiveness as a destination for cash and investments.
The UK’s government estimates that British investors hold over £100 billion in the country, and it is thought that the agreement could raise several billion pounds per year in revenue for the Treasury. If the deal is completed and implemented, income streams such as interest payments would be taxed, with that revenue given to the British Treasury. A similar agreement made last year between Britain and Lichtenstein is thought to generate around £1 billion in taxation for the UK.
Germany is undertaking similar negotiations with its south-western neighbour. It is estimated that German citizens hold around €200 billion in Swiss accounts and so Germany could raise an even greater tax stream than the UK.
Spain already has a similar agreement in place, and on October 22nd Canada’s government signed a deal with Switzerland to receive more information on suspected tax evaders.