Federal Council initiates consultation on automatic exchange of information in tax matters with Australia

Bern, 29.04.2015 - Today, the Federal Council initiated the consultation on the automatic exchange of information in tax matters with Australia. Switzerland and Australia had signed a corresponding joint statement on 3 March 2015. The first automatic exchange of bank client data with partner countries should take place in 2018, provided the necessary legal foundations are created in time.

The joint declaration signed by Switzerland and Australia on 3 March 2015 makes provision for the mutual application of the global standard for the automatic exchange of information once the statutory basis has come into force in both countries. In addition, the declaration specifies that Switzerland and Australia are satisfied with the confidentiality rules provided for in the other jurisdiction with regard to tax. Moreover, Australia has established a regulatory procedure for its taxpayers. Finally, Australia has declared its willingness to hold talks on improving market access for Swiss financial service providers.

The agreement of 3 March 2015 with Australia and the federal decree based on this that has now been submitted for consultation are the first of their kind for introducing the automatic exchange of information with a partner state.

Within the framework of the consultation, interested parties have until 19 August 2015 to comment on the federal decree based on which Switzerland will activate the automatic exchange of information with Australia.

From a legal viewpoint, the two countries will exchange information automatically based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA). The consultation procedure on the MCAA and on the draft Federal Act on the International Automatic Exchange of Information in Tax Matters ended on 21 April 2015.

Switzerland is in contact with other countries regarding the introduction of the automatic exchange of information. Switzerland and the EU initialled an AEOI agreement covering all 28 EU member states on 19 March 2015. It should be signed shortly.