The Swiss government has
accepted that the qualified intermediary (QI) agreements made between Swiss
banks and the US government do not violate banking secrecy laws. The QI
agreements came under scrutiny after the disclosure of large amounts of UBS
client data to the US Justice Department in 2009.
On 30 May 2010, in their report on the disclosure of UBS client data, the Control Committees of the National Council and Council of States instructed the Federal Council to clarify questions on the application of Article 271 of the Criminal Code (SCC) and on the compatibility of the QIA with Swiss banking secrecy.
This request from the Control Committees of the National Council and Council of States was prompted by the general authorisation in accordance with Article 271 para. 1 of the Swiss Criminal Code issued in 2000 by the Federal Department of Finance (FDF) for those persons dealing with the enforcement of the QIA concluded between the US Internal Revenue Service (IRS) and Swiss banks or securities dealers. The FDF authorisation allowed those persons dealing with the application of the QIA, i.e. employees of banks and securities dealers, to carry out withholding tax deductions, in particular, based on US law.
According to the current qualified intermediary system, non-US persons do not have to disclose their identity to the IRS, whereas since 1 January 2001, US persons have been allowed to hold US securities only if they were prepared to sign a so-called W-9 form.
The information on the form allows the qualified intermediary (QI) to disclose income earned on the securities to the IRS and thereby disclose the identity of the US person. The QI had to obtain the approval of clients to disclose their identity or obtain their consent that no US securities were being held for them. Due to the options that exist, the Federal Council concluded that the QIA does not violate banking secrecy.
With regard to the authorisation granted in 2000 in accordance with Article 271 para. 1 of the Swiss Criminal Code, the Federal Council is of the opinion that, as things currently stand, authorisations of such political relevance as this case come under its authority and a generally abstract ruling on an individual authorisation with an undefined target group would have been preferable.
If you have Unreported Income From Swiss Banks or are a Swiss Bank Employee under investigation, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us orwww.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).
On 30 May 2010, in their report on the disclosure of UBS client data, the Control Committees of the National Council and Council of States instructed the Federal Council to clarify questions on the application of Article 271 of the Criminal Code (SCC) and on the compatibility of the QIA with Swiss banking secrecy. This request from the Control Committees of the National Council and Council of States was prompted by the general authorisation in accordance with Article 271 para. 1 of the Swiss Criminal Code issued in 2000 by the Federal Department of Finance (FDF) for those persons dealing with the enforcement of the QIA concluded between the US Internal Revenue Service (IRS) and Swiss banks or securities dealers. The FDF authorisation allowed those persons dealing with the application of the QIA, i.e. employees of banks and securities dealers, to carry out withholding tax deductions, in particular, based on US law.
According to the current qualified intermediary system, non-US persons do not have to disclose their identity to the IRS, whereas since 1 January 2001, US persons have been allowed to hold US securities only if they were prepared to sign a so-called W-9 form.
The information on the form allows the qualified intermediary (QI) to disclose income earned on the securities to the IRS and thereby disclose the identity of the US person. The QI had to obtain the approval of clients to disclose their identity or obtain their consent that no US securities were being held for them. Due to the options that exist, the Federal Council concluded that the QIA does not violate banking secrecy. With regard to the authorisation granted in 2000 in accordance with Article 271 para. 1 of the Swiss Criminal Code, the Federal Council is of the opinion that, as things currently stand, authorisations of such political relevance as this case come under its authority and a generally abstract ruling on an individual authorisation with an undefined target group would have been preferable.
If you have Unreported Income From Swiss Banks or are a Swiss Bank Employee under investigation, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us orwww.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).
Source:
Swiss Federal Council
Swiss Federal Council
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