The existing treaty has not been updated since it was signed in 1980, and negotiations for the text of a revised treaty were recently concluded, Australia’s assistant treasurer minister David Bradbury said in statement.
Bradbury said: “A revised treaty would strengthen administrative assistance between Australian and Swiss revenue authorities, including overcoming long-standing bank secrecy provisions. This is a key objective of both governments and reflects long-standing efforts to improve international standards of tax transparency and tax information exchange.”
He also highlighted that tax system integrity through international cooperation is also a key focus of the G20 countries.
“The Australian and Swiss Governments will sign the revised treaty text at the earliest opportunity, subject to the completion of their respective domestic approval processes. Further information on the revised treaty will be made available upon signature.”
Australia’s tax commissioner Chris Jordan also revealed last Friday that the Government was investigating substantial data, along with the US and UK “which reveals extensive use of complex offshore structures to conceal assets by wealthy individuals and companies….in a number of jurisdictions around the world including Singapore, British Virgin Islands, Cayman Islands and Cook Islands”.
"These arrangements may be perfectly legitimate or may involve tax avoidance, evasion or other serious offences by taxpayers and we need to look closely at the information we now hold," Jordan said.
To read assistant treasurer Bradbury’s full statement on the updated treaty with Switzerland, click here.
Last week, International Adviser reported that Spain has ruled against extraditing a former HSBC employee who is wanted in Switzerland on charges of stealing data on tens of thousands of bank accounts that a number of countries have used to pursue suspected tax evaders.
To read the story about former HSBC employee Herve Falciani, click here.
