Swiss plan aims to defuse tax dispute
Published 5:00 am Thursday, July 4, 2013
PARIS — The Swiss government said Wednesday that it had found a way to allow the country’s banks to turn over data to the United States in spite of strict banking secrecy laws, potentially opening the way for hundreds of lenders to end the threat of criminal prosecution by the Justice Department in Washington.
The governing Federal Council said in a statement that banks wishing to hand over information would be able to seek authorization from the Swiss government on an individual basis, “within the scope of existing law and particularly data protection and employment law provisions.”
The central government’s plan is needed to address the vacuum left after Parliament adjourned for the summer without having approved an information-sharing agreement with the United States.
Some sort of Swiss government approval is essential for any sharing of information, because it is a crime under Swiss law to transfer bank data to foreign authorities. The Federal Council’s proposal does not provide for any transfer of individual client data, something that is handled through requests from one government to another. Banks could, however, seek permission to turn over information on employees who had dealt with American tax evaders, as well as information about how tax dodges that targeted American clients actually worked. The Federal Council acts as the head of state.