EU to End Banking Secrecy After Signing Deal with Switzerland

MEDIA ROOM

The EU has actively furthered its efforts in mitigating tax evasion by signing a tax evasion agreement with Switzerland. EU Commissioner Pierre Moscovici described the move as a concrete step forward towards a fairer taxation mechanism across Europe and one that will surely deter tax evasion.

According to this agreement, the EU and Switzerland will exchange information related to the bank accounts of their respective citizens. Furthermore, as of 2018 EU residents will no longer be able to hide away undeclared income in Swiss banks. The EU Commission is also embarking on similar agreements with other locations such as Monaco, Andorra and Liechtenstein.

This move on behalf of the EU links to the 2014 agreement made between EU member states regarding strengthened transparency. It will make it easier for EU member states to track and tackle tax evasion whilst preventing the concealment of undeclared income and assets abroad.