GENEVA: Switzerland said on Monday it had completed a programme to pay Britain and Austria hundreds of millions of euros in settlements for past tax-dodging by their citizens.
The Swiss tax administration said in a statement London had received a total of £469.5 million (RM2.5 billion) and Vienna, €738.3 million (RM3.3 billion).
With the financial crisis having put Switzerland under mounting pressure to lift its trademark banking secrecy laws, the country opted to give ground in some areas in order to defend the overall principle of privacy.
Under bilateral deals with Britain and Austria, Switzerland offered two options to people who failed to declare in their home countries money placed in Swiss banks. They could either turn themselves in to their homeland’s revenue services, or have their accounts taxed by the Swiss, who then transferred the funds without naming the clients.
It was under the latter system that Switzerland handed over the sums in tranches between July last year and last month.
The completion of the payments means that the British and Austrian clients’ funds are now considered clean by tax authorities.
In addition to the deal on securing back taxes, Switzerland has agreed to collect regular taxes from British, Austrian and other European Union account holders, then transfer the money to the individual’s homeland anonymously. AFP