EP gives green light to tax agreement with Switzerland

BRUSSELS, Oct 27 (KUNA) — The European Parliament adopted a resolution Tuesday by 593 votes to 37 on a deal with Switzerland to make it harder for EU citizens to hide cash from the taxman in Swiss bank accounts. Under the deal, the EU and Switzerland will automatically exchange information on the bank accounts of each other’s residents, starting in 2018, said an EP press release. “Ending bank secrecy is a very important step in this fight against tax fraud and for tax justice,” said rapporteur of the resolution Jeppe Kofod. The EU and Switzerland signed an agreement in May 2015 to clamp down on tax fraud and tax evasion. Information to be exchanged includes not only income, such as interest and dividends, but also account balances and proceeds from the sale of financial assets. he EU and Switzerland must now conclude the agreement in time for it to enter into force on 1 January 2017. The EP has to be consulted in this process, and the agreement also has to be ratified by the Swiss Parliament.