–Adds Comments From Press Conference By German And Swiss Fin Min
BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble and his
Swiss counterpart Eveline Widmer-Schlumpf on Wednesday signed a tax
treaty that settles a dispute over tax evasion by German citizens.
Under the treaty, a withholding tax on German assets in Swiss banks
will be set at 26.375%. This is the same tax rate applied on interest
earnings in Germany.
In order to legalize German citizens’ untaxed deposits in
Switzerland, retroactive taxation at a rate of 19% to 34% will be
applied for the past decade.
Swiss banks will have to pay CHF2 billion upfront to Germany, a sum
that will be gradually reimbursed to the banks as revenue from the
retroactive taxation is transferred to Germany.
Undeclared German assets held in Switzerland are estimated at some
CHF200 billion.
The treaty is to take effect at the start of 2013 and is still
subject to parliamentary approval in both countries.
Both Schaeuble and Widmer-Schlumpf said at a press conference here
they were confident of mustering the necessary parliamentary support.
The political opposition in Germany, which controls the upper
house, has announced that it will block the treaty. In Switzerland there
also exists some resistance against the deal, Widmer-Schlumpf
acknowledged.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$X$$$,MGX$$$,MFX$$$,M$G$$$]
