In a last-ditch attempt the Swiss government may issue an executive order allowing its banks to pass on data to US authorities, according to Reuters.
The government’s seven-strong Federal Council will look for another way to facilitate the release of data, the article said, after the refusal by parliament’s lower house to debate the bill passed the buck back to the government. The lawmakers called on ministers to find a solution to the long-running tax dispute.
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On June 18, the country’s lower house of parliament stalled the progress on a tax-evasion bill that would have allowed the country’s banks to share data with the US government.
A majority of opponents argued the law violated Swiss sovereignty and did not provide either enough information about possible consequences or assurances from the US to protect bank employees.
The Swiss government has warned that the bill’s failure could prompt impatient US prosecutors to indict banks, although it could still invoke an executive order to allow them to hand over data to try to avert charges.
Lawmakers from both the lower and upper houses of parliament agreed a statement saying they supported a solution to the long-running tax dispute and called on the government to allow banks to co-operate under existing laws.
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By GlobalData
Swiss-US saga
Several Swiss banks are being targeted directly by US authorities for assisting Americans evade taxes, following a US$780 million settlement with UBS in 2009.
On 14 June 2013, the US tax authorities, reportedly, filed a request for legal assistance to identify former American clients of Wegelin & Co, Switzerland’s oldest private bank, who are suspected of tax dodging. It is the fourth such request against a Swiss financial institute.
In January 2013, Wegelin said it would shut its doors following a US indictment on charges of helping wealthy Americans evade taxes through secret accounts, and later pleaded guilty, admitted wrong-doing, as well as paid US$58 million to US authorities.
At the end of 2012, the number of Swiss banks under investigation by the US Department of Justice (DoJ) increased to 13, including Credit Suisse, Geneva private bank Pictet and Bank Frey.
At the end of May, Julius Baer was ordered by the Swiss government to hand over data on US clients that will be passed on to US tax authorities. Julius Baer is, reportedly, working on providing the data.
