Federal Council initiates two consultations on international exchange of information in tax matters

Bern, 14.01.2015 - During its meeting today, the Federal Council launched two consultations on the international exchange of information in tax matters, which should also make the automatic exchange of information (AEOI) possible. One bill concerns the OECD/Council of Europe administrative assistance convention signed by Switzerland in 2013. The other bill concerns Switzerland's participation in the Multilateral Competent Authority Agreement and the AEOI implementing act. The issue of the countries with which Switzerland should establish the automatic exchange of information will be presented to Parliament separately at a later stage.

Joining the OECD/Council of Europe administrative assistance convention of 1988, which has been signed by 69 states and implemented by 43, is currently part of the standard for international cooperation in tax matters. The new global standard for the automatic exchange of information (AEOI) should prevent cross-border tax evasion. To date, almost 100 countries, including Switzerland and all other major financial centres, have declared their intention to adopt the standard.

The Federal Council's decision to sign the administrative assistance convention and implement the global AEOI standard is in line with its strategy for a competitive Swiss financial centre, which includes the international standards in the area of tax and particularly those concerning transparency and the exchange of information. The bilateral activation of the AEOI will be addressed in separate bills that will be submitted to the Federal Assembly for approval. Corresponding negotiations with the European Commission and possible partner states are under way or will commence in the near future. The exchange of information within a country is not affected by the global standard and it is not covered by the two consultations either.

Both consultations will run until 21 April 2015. The Federal Council's dispatches for the attention of Parliament are expected in summer 2015. Parliament can thus discuss the draft legislation from autumn 2015. This means that the legal foundations could come into force from the beginning of 2017, even with a possible referendum. The first automatic exchange of information would then take place in 2018.