Switzerland and Australia have signed a joint declaration expressing their intent to begin automatically exchanging information on tax matters using internationally agreed standards beginning in 2018, the Swiss government announced March 3. Collection of the data will begin in 2017.
The agreement, signed in Canberra, is the first declaration on automatic exchange of information signed by the Swiss government with another state.
Switzerland’s Federal Council on October 8 issued negotiation mandates for introducing automatic exchange if information with countries by means of separate agreements. The Swiss decided that, initially, consideration would be given to signing agreements with countries with which Switzerland had close economic and political ties and which, if appropriate, provide their taxpayers with “sufficient scope for regularisation.”
The Swiss government said that the criteria laid out in the negotiation mandate were met with respect to the agreement with Australia. Australia has established a regularisation procedure for its taxpayers and has declared its willingness to hold talks on improving market access for Swiss financial service providers, the Swiss government said. Moreover, the joint declaration specifies that each jurisdiction is satisfied with the confidentiality rules provided for in the other jurisdiction with regard to tax information, the Swiss government said.
The legal basis for automatic exchange of information still must be created in both countries. The Swiss government said it will prepare a consultation draft on the introduction of the automatic exchange of information with Australia. The corresponding Federal decree will then be submitted to Parliament for approval.
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