A tax deal between Switzerland and Germany, which was designed to regularise the estimated $200 billion of undeclared German assets within Swiss bank accounts has fallen through, despite a last ditch attempt by the German government to revive it.
The propose agreement between the two countries, should it have been agreed, was due to come into force from the start of next year; and would have seen German citizens with undeclared wealth in Swiss accounts retain their anonymity and regularise their assets by paying a one-off penalty and submitting to a withholding tax in the future.
However, in November despite the agreement being ratified by Switzerland, it was rejected by Germany’s upper house; and the German government’s attempts to revive the deal earlier this week, via a mediation committee failed; after the committee voted against it.
Following the decision by the German committee, the Swiss President and Finance Minister said that she regretted the decision by Germany not to ratify the decision; adding that failure to agree a deal will result in tax evaders continuing to be caught only by chance.
As an accountant in Bristol, Elaine Durrant specialises in offering tax advice, guidance and support to businesses and individuals.