U.S. and Switzerland begin negotiations for tax information exchange

The U.S. Department of the Treasury has announced that the United States and Switzerland will begin negotiation of a protocol to amend their bilateral income tax treaty, which entered into force in 1996. Consistent with the announcement made by the Swiss Federal Council on March 13, 2009, the two countries intend to revise the tax treaty so the two countries can exchange information for tax purposes to the full extent permitted by Article 26 of the Organization for Economic Co-operation and Development (OECD) Model Income Tax Convention.

"As called for in the G-20 meeting in London, we believe that all countries must adhere to international standards for exchange of tax information. We welcome moves by Switzerland to implement international standards by agreeing to revise the U.S.-Switzerland tax treaty for the exchange of information for tax purposes with the U.S." said U.S. Treasury Secretary Tim Geithner. "I look forward to swift conclusion of an agreement; this agreement has the potential to serve as an example for other leading financial centers around the world, and I will continue to demand transparency from countries on behalf of American taxpayers."

Negotiations are expected to begin April 28 in Berne, Switzerland.