UK and Switzerland Amend Double Taxation Treaty

9
Sep/090

UK and Switzerland Amend Double Taxation Treaty

Swiss Bank Secrecy Threatened Again - What Are the Alternatives?

Swiss and UK authorities added to an existing double taxation treaty on Thursday by agreeing to OECD standards for transparency and information exchange. It is expected that the new treaty, if and when it comes into force, will be used to help combat tax evasion.

The agreement is part of a worrying relaxation of bank secrecy in Switzerland, coming after the release of confidential account details to both France and the US. This latest agreement has the capacity to affect even those who have no relation with the UK, if the UK manages to pass on information which it has discovered about the citizens of other countries.

Since March, Switzerland has operated a new policy concerning international cooperation in tax matters, and agreed to adopt article 26 of the OECD Model Double Tax Convention.

Despite the worrying signs, there is still hope. Although the Swiss government has agreed this treaty, it must still ratified by the Swiss internally. Furthermore, laws in Switzerland are subject to a referendum and repeal with a petition of 50,000 signatures. For Swiss citizens, it must seem the benefits of keeping bank secrecy surely outweigh the disadvantages.

Even so, privacy-seekers are constantly on the lookout for alternatives which might still keep their identity confidential where a Swiss bank account fails. At the forefront of developing viable financial alternatives are offshore financial companies such as Capital Conservator - which manage to keep customer identities confidential irrespective of changes in bank secrecy.

Find out more about about confidential private banking and private bank accounts.