E-Paper
US inks agreement with Switzerland; ready to work with others
The United States has signed an agreement with Switzerland allowing greater tax information exchange between the two and said it is looking forward to working with other nations to act against tax evasion.
The United States has signed an agreement with Switzerland allowing greater tax information exchange between the two and said it is looking forward to working with other nations to act against tax evasion.
Notably, India is looking for a similar exchange of information on offshore tax dodging.
Treasury Secretary Timothy Geithner, who signed the protocol with the Swiss Ambassador to the US, said it would serve as an example to countries around the world.
In August this year, the two countries had reached a deal under which the Swiss bank UBS would provide details of 4,450 accounts of Americans as the Obama administration stepped up efforts to reduce offshore tax evasion.
The protocol was inked just a day ahead of the G-20 summit which is expected to discuss tax evasion. Geithner said tax evasion is a global issue requiring global co-ordination.
"Global efforts to end offshore tax evasion have never been stronger; we look forward to working with other nations to act against tax evasion and protect public finances and our financial systems," Geithner said.
At the G-20 Summit in London, the US had supported efforts to ensure that all countries adhere to international standards for exchange of tax information.
The US-Swiss agreement updates the current income tax treaty between the two nations. It also provides for mandatory arbitration of certain cases and addresses issues around the cross-border taxation of individual retirement accounts.
