Germany Seeks To Iron Out Swiss Tax Deal Issues

Monday, 19 March 2012

Germany Seeks To Iron Out Swiss Tax Deal Issues

by Ulrika Lomas, Tax-News.com, Brussels

19 March 2012

Following recent ‘constructive’ talks with his colleagues from Social Democrat- (SPD) and Green Party-led federal states, German Finance Minister Wolfgang Schäuble has agreed to hammer out with Switzerland certain changes to the bilateral Swiss-German tax deal, signed in September.

Baden-Württemberg’s Finance Minister Nils Schmid (SPD) reiterated that without “considerable improvements” to the agreement, the SPD and Green Party would not support the plans in the Bundesrat, or upper house of parliament.

Marking significant progress, however, Schmid underscored that the party did not want the plans to fail, indicating that it would be prepared to accept the fact that there would not be a provision providing for an automatic exchange of information between the tax authorities, and that the party would uphold

Switzerland’s insistence on the preservation of banking secrecy to ensure anonymity.

The SPD and Green parties are opposed, however, to the provision contained in the agreement providing that German citizens with ‘old money’ held in Swiss bank accounts would merely be subject to a proposed one-off flat tax of between 19% and 34%, to legalize their accounts.

The SPD has also urged the government to ensure that money can not be transferred from Switzerland to another country following the entry into force of the agreement on January 1, 2013.

A spokesman for the Swiss State Secretariat for International Financial Affairs has confirmed that the government in Bern is willing to enter into further discussions with Germany, provided that the core content of the agreement remains intact.

Germany and Switzerland signed the agreement back in September. Wealth of German citizens in the Confederation has been estimated at around EUR180bn (USD237bn).

Germany has already planned certain changes to the September deal to appease the European Commission.

In the case of conflict, provisions contained in existing European Union (EU) tax agreements will have priority over the regulations provided for in the treaty between Germany and its neighbouring country.

In concrete terms this will apply to the treatment of interest income earned by German nationals with accounts held in Switzerland. Such income is currently subject under the terms of the EU savings tax directive to a 35% rate of tax.

No comments:

Post a Comment

Wealth Protection Tips

Q: Should I use Secret Bank Accounts to hide money from Tax Authorities?
Ans: NO, in the case of an individual, any funds in a off-shore bank account not declared to your Tax Authority is a criminal offense and "NO" Bank can protect you.

Q: Can my Bank in a Tax Haven Country really protect my position?
Ans: NO, they have an obligation to disclose illegal dealings, if your Bank withhold such information, this remains a criminal offense and they will be party to the criminal action and be prosecuted with you.

Q; How do I protect my wealth generating assets and profits?
Ans: By using the correct global international structures and ensure your global international structures are done properly. There is no need to hide from Tax Authorities

Q: Do I need Tax Haven Countries?
Ans: You do need the correct global international structures placed in the correct Jurisdiction within certain protected Tax Haven Countries which structures ensure maximum protection of private information and assets held.

Q: Who do I contact to help me and how do I sort this out?
Ans: Premier Gold has a Wealth Protection department with highly capable experts that are more than capable to assist you and put your mind at ease.

Go to the Premier Gold Group website and submit your online request for support. They will refer your request to the experts dealing with global international structures.

Important Wealth Protection Information

The big question always remains, “How do I protect myself and my wealth generating assets against changing times and circumstances in the world?

The very first thing you should understand is as an individual owning all your wealth “personally”, you are extremely vulnerable and exposed to certain obligations by law. As a citizen of your country you are an income generating asset to your country. This is the position your country would like to protect and the very reason why law makers implement laws to protect their income (Taxes). If your assets are owned by you personally or in an off-shore trust as a beneficiary you are one with your assets and you will have no doubt “big problems” if failing to disclose as obligated. If your country controls you they control your assets and their own income (Taxes).

This is the very reason why you should consider proper international structures to clearly define the line of ownership between you and your assets. Remember your country is entitled to their income (Taxes) and they will do anything to protect that position. If you have proper international structures and the ownership of your assets is properly defined your country can legally receive what they entitled to which in no way could put you in a position where you break the law to protect wealth.