BANK ACCOUNTS HELD IN SWITZERLAND BY FOREIGN RESIDENTS: INTRASMISSIBILITY OF THE NAMES

The Swiss Federal Administrative Court, accepting the petition presened by an important Swiss Financial Institution, pronunced against the transmission to the French Tax Authorities of over 40,000 names of French taxpayers, with bank accounts in Switzerland.

The French Tax Authority claimed the loss of over 10 billion of euro of taxes due to the omitted reporting on the lists of the names of taxpayers with accounts in Switzerland, although it was correctly stated that they were French residents.

This judgement differs from the previous ruling of the Confederation, establishing the important principle according to which to be holder, or having dispositive powers on an account Swiss banks, doesn’t authorize the Federal Administration of the Contributions, (in the absence of other elements / precise clues) to transmit the names of the owners foreign tax authorities in order to allow them to ascertain the correct announcement of deposits and their regularization within the voluntary disclosure programs.

This decision cold have important repercussions on similar collective applications presented by other countries, including Italy, and in cases the Italian Tax Authority should request information on Italian taxpayers resident in Switzerland in 2010.

Our staff is available for any clarifications.