Switzerland signs tax information exchange agreement with Seychelles
BERN, Switzerland, May 26, 2014/African Press Organization (APO)/ -- Today in Brussels, Switzerland and the Seychelles signed a tax information exchange agreement (TIEA). Such agreements are concluded within the framework of Switzerland's administrative assistance policy. In addition, the tax information exchange agreement with the Seychelles should make it possible for this developing country to expand the basis on which it collects taxes and contributes to strengthening Switzerland's development cooperation.
The agreement has to be approved by parliament and subjected to an optional referendum before it can enter into force. During the hearing procedure which followed the completion of negotiations, the cantons and the business associations concerned expressed their support.
Switzerland has signed seven TIEAs to date. Aside from the one with the Seychelles, it has also entered into such agreements with Greenland, Andorra, the Isle of Man, Jersey, Guernsey and San Marino. It is continuing to pursue negotiations on agreements of this type with other interested jurisdictions.
On 4 April 2012, the Federal Council decided to adopt the international administrative assistance standard not only in double taxation agreements (DTAs) but also in tax information exchange agreements.
In principle, DTAs and TIEAs are equivalent instruments for concluding an administrative assistance clause in accordance with the international standard. Unlike DTAs, which are aimed primarily at avoiding double taxation and therefore contain other material provisions, TIEAs merely govern the exchange of information upon request.