Friday, October 11, 2019
Switzerland's Federal Tax Administration (FTA) has announced the exchange of information on millions of financial accounts with 75 partner countries.
With 63 of the countries, the exchange of information was reciprocal – that is, Switzerland received information but did not provide any data, either because those countries do not yet meet the international requirements on confidentiality and data security or because they chose not to receive data. The FTA sent information on around 3.1 million financial accounts and received information on around 2.4 million accounts.
Currently, around 7,500 reporting financial institutions, including banks, trusts, and insurers, are registered with the FTA. These institutions collected the data and transferred it to the FTA.
Identification, account, and financial information is exchanged, including the name, address, state of residence, and tax identification number of the account holder, as well as information concerning the reporting financial institution, account balance, and capital income. Having received information from partner states, Switzerland's cantonal tax authorities can verify whether taxpayers have correctly declared their overseas financial accounts in their tax returns.
Legislation for the implementation of the global standard on the automatic exchange of information (AEOI) in Switzerland came into force in January 2017. The first exchanges took place in September 2018. The largest exchange in both 2018 and 2019 was with Germany, in both directions. From 2020, Switzerland's network of AEOI states will expand further, to around 90 countries.