Switzerland has submitted a revised tax treaty to The Department of the Treasury of Australia, under which Swiss banks would provide Australian authorities with secret account details upon request.
The addition of exchange of information clause is said to be the first-ever change made to the treaty after it was initiated between the countries in 1980.
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Under the new clause the Australian Tax Office can seek information about secret bank accounts in a bid to net tax evaders, reported The Sydney Morning Herald.
In a statement, The Treasury stated, ”The revised treaty aims to align the bilateral tax arrangements more closely with current Australian and international treaty policy settings."
The new clause, however, does not provide an automatic exchange of information as recommended by the Organisation for Economic Co-operation and Development (OECD).
With this, the Australian authorities can only ask for information about specific accounts, and also the clause is not applicable for the accounts that have already been closed.
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By GlobalDataThe Treasury, meanwhile, has called all interested parties to make a submission on the draft by 18 June.
