BASEL: Switzerland and Argentina on Wednesday signed a joint declaration introducing the automatic exchange of information in tax matters (AEOI) on a reciprocal basis.
The agreement will likely have an impact on the so-called white-was programme of President Mauricio Macri’s administration, which aims to collect taxes on offshore accounts, as at least 80 local companies hold bank accounts in Switzerland — which is the country’s sixth largest investor.
UBS Ag and Credit Suisse, the largest private banks in the country, under pressure from the Swiss government, have already informed account holders that they will need to declare the money in their accounts. If they do not comply, the Swiss banks have warned their clients that they will be fined and have to withdraw their assets, or they will report the account information to Argentina government authorities.
Both countries intend to start collecting data in accordance with the global AEOI standard in 2018 and to exchange it from 2019 onwards. Aside from the signing of the AEOI by State Secretary Jörg Gasser for Switzerland, both countries also conducted negotiations on the framework conditions for investments and market access for financial services and the basic principles of Swiss financial market policy.
The Swiss banks have already provided their clients different investment options to enter the government’s white-wash programme, suggested different law and accounting firms to help them execute the procedure, and even provided paperwork to help them declare their taxes and open a special account.
Switzerland is thus strengthening its network of AEOI partner states. The Let’s Change government meets in particular the high demands in terms of adherence to the principles of specialty and the safeguarding of confidentiality for the data delivered, which are prerequisites for the introduction of the AEOI.
In order for Argentine clients to finally be able to keep their money in the bank, they will have to sign a sworn statement before the authorities in Switzerland that confirms that the money is legally declared. If their declaration is revealed to be false, a client will automatically be fined up to 55 percent of the money held in the account.
