European Union and Switzerland signed on Wednesday a historic agreement on transparency in tax matters. The parties will automatically exchange information on residents accounts as of 2018.
According to a press release from the European Commission, the agreement means to end the bank secrecy for European Union residents and prevent fraudsters from hiding undeclared funds in their accounts in Switzerland.
The document was signed by economy Commissioner Pierre Moscovici, Janis Reirs, Finance Minister of Latvia, whose country holds the rotating EU presidency, and the Secretary of State for International Finance in Switzerland, Jacques de Watteville.
"Today's agreement signals a new era of tax transparency and cooperation between the EU and Switzerland, it is a new blow against the fraudsters, a new step to correct taxation in Europe. The EU has paved the way for automatic exchange of information, hoping that other international partners will follow. This agreement is proof that the EU's ambition and determination can yield results, " Moscovici said.
The automatic exchange of information is one of the most effective tools for combating tax evasion, providing essential information on the authorities' foreign income persons, in order to assess and collect related fees.
Member States will receive annually the names, addresses, tax identification details and dates of birth of people with bank accounts in Switzerland and other information about their financial situation, the release reads.
The European Commission is currently finalizing negotiations for similar agreements with Andorra, Liechtenstein, Monaco and San Marino.