Switzerland intends to apply for assistance agreement with U.S. in the UBS case

Switzerland intends to apply for assistance agreement with U.S. in the UBS case – AWP

March - 29 - 2010 Author: Elizabeth Moore Respond

BERN (Dow Jones) – The Federal Council in Switzerland on Wednesday Application of assistance agreement with the U.S. in the dispute over the customer data Bank UBS agreed. Whether the UBS client data to the United States actually be handed to decide, but in the end, the Parliament, it said, according to AWP news agency on Wednesday. The provisional application allows not the release of customer information, only the assessment the individual cases of U.S. customers.
Switzerland had the so-called mutual assistance agreements in the past Summer signed with the United States. It should allow Switzerland not only for fraud but also for tax evasion to provide assistance. In order to apply the Agreement provisionally, can Now, the Federal Council on Wednesday a change log signed, which makes the agreement a treaty. The protocol was signed the same day in Washington.
The Federal Council intends to apply the Agreement provisionally now, so comply with its international obligations, Switzerland can. The agreement commits to Switzerland in the summer of 4450 in cases to assess whether there are offenses that a publication of the data would justify.
The Federal Council can see it necessary, said the Swiss Justice and Police (FDJP) on Wednesday, his competence to exercise. The conditions – particular urgency and the Safeguard important interests – be met. Switzerland would however, with its international obligations not meet there is a risk that the legal conflict with the USA “again escalate, with adverse consequences for the financial center of Switzerland.
The U.S. IRS, said in a reaction with the fact that the Protocol of Amendment to the U.S. demands nothing change. The Protocol in no way change the amount or type of must hand over customer data to Switzerland to the IRS, said the head of the Tax authority, Doug Shulman. “We expect the Swiss government, their Obligations under the original agreement compliance. “If Switzerland is not the requested data delivery, you ready to take further legal action was threatened with IRS commissioner in Washington.
In January, the Federal Administrative Court in Switzerland against the previous year in assistance agreements closed its veto exercised: After The Court considers that the actions of the Federal Council was not right. To provide U.S. assistance in cases of fraud to may, if he had the normal way, the existing Double taxation agreements have to change was that the Court. The Assistance agreements is not sufficient as a legal basis.
To correct this deficiency, one had to go to the assistance agreements be adjusted. Second, it should be presented to Parliament. The first Step is now complete: In on Wednesday approved Change log is that the agreement is a treaty and when in doubt the bilateral double taxation agreements is going on.
With the decision to oppose the provisional application, the Federal Council the recommendations of committees of the National and Of States. They had recommended to the Federal Council, the agreement to any Approval through Parliament not to apply.

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March 31, 2010 14:41 ET (18:41 GMT)

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