Switzerland may enact a special law to enable it to hand over bank account details of alleged American tax-evaders to the U.S. authorities.
An American journal said Friday that the Swiss government would propose a special law enabling it to hand over data on U.S. tax-dodgers. The move was aimed at circumventing last month's court decision blocking last year's historic tax settlement with the U.S. authorities.
A Swiss court had struck down the tax-settlement deal with the U.S., under which banking major UBS had agreed to disclose account details of Americans suspected of tax-evasion.
Meanwhile, reports say that the Swiss government has vowed to reject undeclared assets from foreigners--a move seen to counter tax-evasion and refurbish the reputation of Switzerland's banking sector.
Asserting that the Federal Council (cabinet) is against attracting undeclared overseas funds, the Federal Department of Finance said in a statement that it would draw up various solutions to prevent new and undeclared funds from coming to Switzerland.
"Switzerland has a strong financial centre and it is one that is important for its economy," it said.
"To preserve its integrity, the Federal Council (cabinet) is gearing its financial market strategy to that of managing declared assets," it added.
The finance department added that it would also look at regularising undeclared assets already held in Switzerland whilst ensuring that privacy was safeguarded.
Long-known for its banking secrecy, Switzerland has come under enormous international pressure following the G-20 nations' crackdown on tax havens.
Consequently, the country negotiated double-taxation agreements with 18 countries based on the Organization for Economic Co-operation and Development (OECD) standards, since March 13 last year.
In one such deal, UBS last year agreed to disclose bank account details of 4450 of its clients and American tax-payers, who allegedly evaded paying taxes. The move came after the UBS was imposed a massive fine over its role in helping Americans evade taxes.
Last week, the Swiss Bankers Association (SBA) said that countries seeking information on secret accounts should provide the name of the individuals and the bank involved.
"The country requesting information must name the specific individual and also give the name of the bank involved...
"The idea is to protect the privacy of clients innocent of any wrongdoing, and we believe this is correct," a SBA spokesperson added.
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