(March 3, 2015)

On March 3, 2015 the Swiss Federal Department of Finance (FDF) as well as The Hon Joe Hockey MP (Treasurer of the Common Wealth of Australia) issued press releases announcing that on March 3, 2015 Switzerland andAustralia signed a joint declaration on the introduction of the automatic exchange of information in tax matters on a reciprocal basis. According to the press release as issued by the Swiss FDF this is the first such declaration signed by Switzerland with a partner state.

Both jurisdictions intend to introduce on a reciprocal basis automatic exchange of financial account information in tax matters based on the OECD Common Reporting Standard and the Commentaries thereon between each other beginning in the year 2017 (first transmission of data in 2018). Based on the joint declaration the final introduction is subject to the fulfilment of certain conditions:

·       the Multilateral Convention on Mutual Administrative Assistance in Tax Matters of January 25, 1988, as amended by the Protocol of May 27, 2010, being in force in each jurisdiction;

·       the signing of the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information by each jurisdiction;

·       the notification as provided for in Section 7 (Term of Agreement) of the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information by each jurisdiction to the Co-ordinating Body Secretariat being made, which includes, among other requirements, the notification that the necessary laws are in place to implement the OECD Common Reporting Standard;

·       the Swiss Confederation and Australia notifying the Co-ordinating Body Secretariat that they intend to exchange information on an automatic basis between each other based on the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information;

The joint declaration furthermore states that the introduction will be dependent on the undertakings referred to in paragraph 5 of the joint declaration, with paragraph 5 of the joint declaration reading as follows:

“Both jurisdictions will strengthen their cooperation in the area of financial services, and  will:

(a)    continue to enable the provision of cross-border financial services and maintain the level of access existing at the date of signature of this declaration;

(b)    discuss and explore issues of financial market access and work towards a common understanding ahead of the next meeting of the Australian-Swiss Financial Dialogue with a view to further facilitate and improve the provision of financial services between their jurisdictions.”

Click here to be forwarded to the text of the joint declaration as published on the website of the Swiss Federal Department of Finance, which will open in a new window (the text of the joint declaration is also available in German, French and Italian on the website of the Swiss FDF. To go to the joint declaration in a different language on first has to go to the press release as issued by the FDF (See below)).

Click here to be forwarded to the press release as published on the website of the Swiss FDF (the press release is also available in German, French and Italian.

Click here to be forwarded to the press release as issued on the website of The Hon Joe Hockey MP (Treasurer of the Common Wealth of Australia).

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