David Jetuah, Accountancy Age, Wednesday 9 June 2010 at 09:51:00

Swiss ministers reject handover of UBS accounts details to the InternalRevenue Service


Swiss ministers have shot down a deal which would have seen banking giant UBShand over account details to the US government.

In August 2009, the Swiss government agreed to a handover of the secretaccounts to prevent further sanctions against the UBS by the Internal RevenueService.

However, Switzerland's lower house of parliament rejected the move on thegrounds the agreement was not in line with the existing Swiss-US Double TaxationTreaty signed in September 2009.

Andreas Kolb, partner in the Switzerland office of law firm Eversheds said:

"Under the new DTT with the US which has been signed on 23 September 2009,exchange of information would basically not be granted in the UBS case.

"This is namely due to the fact that the US are not in the position toindicate the names of the taxpayers."

Further reading:

Orderto disclose UBS tax clients to US was unlawful

UBSwhistleblower wants sentence lifted