Switzerland and Italy have signed an agreement to exchange information for tax purposes in line with international standards as international pressure continues to mount on Swiss authorities over bank secrecy and tax evasion.
Under the agreement, Italian tax authorities will receive tax information about their taxpayers who hold assets in Swiss bank accounts, which will enable them to crack down on tax evaders.
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The agreement will provide partial tax amnesty to Italians who have hidden assets in Swiss banks through a voluntary disclosure procedure that reduces fines and criminal charges. The amnesty runs until 30 September 2015.
The Bank of Italy said that around 70% of the cash Italians have hidden overseas is in Switzerland.
Additionally, both the countries have also signed an agreement to deal with other financial and tax issues, such as the taxation of Italian cross-border commuters.
Commenting on the deal, Italy’s Economy Minister Pier Carlo Padoan said: "We have estimated additional revenues of just 1 euro in the budget law and the only thing I can say is that we will cash in more than that."
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By GlobalDataBut according to Reuters, Italian government expects the deal to yield up to EUR6.5bn in additional tax revenues.
