ROME: Italy and Switzerland signed an agreement to exchange tax-relevant information as part of wider negotiations on contentious financial issues between the two countries.
The agreement will allow Italian tax authorities to ask for financial information about Italian residents who hold assets in Swiss bank accounts. So far, these requests weren’t possible due to secrecy laws covering assets stashed in Swiss banks.
To be applicable, the agreement needs to be ratified by both countries’ parliament. This will likely happen by mid-2017, officials from both countries said.
This is a very important step forward in the relationship between the two countries,” Italy’s Economy Minister Pier Carlo Padoan said. Italy will sign a similar agreement with Liechtenstein on Feb. 26, Mr. Padoan said.
The Italy-Switzerland agreement caps three years of negotiations between the two countries on a number of controversial tax and financial matters. It will make it harder for Italians to hide assets stashed in Swiss bank accounts, to which Italian tax dodgers have traditionally turned to hide undeclared money.
The signing of the agreement will have an immediate effect on Italian residents who decide to adhere to a tax amnesty the Italian government launched in January.
