Swiss banks like Credit Suisse, UBS vow to protect secrecy amid US ultimatum
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Switzerland must solve a dispute with the United States over wealthy citizens using secret Swiss accounts to dodge taxes under existing laws and should continue to protect bank secrecy, the Swiss Bankers Association head said on Monday.
The association's president, Patrick Odier, made the comments after Swiss newspapers reported on Sunday that the US has given an ultimatum to Switzerland, saying that unless detailed information on tax evaders using Swiss accounts is handed over this week Credit Suisse and nine other banks will face charges.
"The cross-border problems with the US can and will be solved. But the United States must understand that Swiss laws must be respected," Odier told a news conference. "Bank client secrecy protects wealth and does not hide it. This protection remains important."
Odier said Switzerland must avoid a repeat of the deal it made to settle a US investigation against UBS, allowing it to bend the country's banking secrecy laws and reveal the details of around 4,450 clients to avoid criminal charges.
He said an accord should be possible under the terms of the existing UBS deal and a new double taxation agreement (DTA) with the US that Switzerland approved in 2009 but is still awaiting ratification by the US Senate.
"The United States should take note of the example of the tax agreements with Germany and Britain. Bilateral problems between friendly states should be able to be solved in an amicable way," said Odier.
Last month Switzerland struck deals with Germany and Britain to tax money kept by their residents in secret Swiss accounts and also introduce a withholding tax on future interest earned, a proposal rejected by Washington.
A long tradition of bank secrecy has helped Switzerland build up a $2-trillion offshore financial industry, but the country has agreed in recent years to do more to help hunt tax cheats amid a global crackdown on tax havens. (Economic Times)
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