Switzerland To Allow Information Exchange In UBS Case

The agreement between the US and Switzerland regarding tax information from UBS accounts is moving to be the standard instead of the exception. Rather than being a one-time agreement between the two countries to share information, the US would have access to Swiss information on a more regular and continued basis.

According to the Federal Council, this process means that in any future appeals, the Court will then no longer be able to regard the UBS Agreement as merely a mutual agreement. Instead, it will stand as a treaty of the same status as the older and more general bilateral double taxation convention. Indeed, according to the general rules of interpretation, it would also take precedence over the latter. As a result, Switzerland will be in a position to provide treaty assistance not only in cases of tax fraud, but also in cases of continued and serious tax evasion.

The proposal to alter the tax treaty between the two countries is making its way to the Swiss Parliament, and the amendment process is expected to be completed in March. With the amendments in place, the information exchange is expected to begin more regularly in August 2010.

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