What is the AIA (Automatic Exchange of Information)?

In our last blog post, we explained the difference between tax evasion and tax fraud. Now we will address a topic that is directly related. As already known, there is an obligation in Switzerland to declare all assets, such as houses or bank accounts abroad, in the tax declaration. To monitor this, the Organisation for Economic Co-operation and Development (OECD) has launched the AEOI program (Automatic Exchange of Information). The OECD has set common standards and guidelines for information exchange and promotes the implementation of the AEOI on a global level.

Goal of the AEOI

The main goal of the AEOI is to enable the automatic exchange of financial information between different countries. This is to ensure that income and financial assets of taxpayers are properly declared and taxed, regardless of the country in which they are located. It aims to make tax evasion more difficult and to assist tax authorities in accurately taxing the income and assets of taxpayers.

What is exchanged?

Under the AEOI, financial information about foreign taxpayers who own income or financial assets in another country is exchanged. Financial institutions in participating countries are required to collect information about foreign account holders and forward it to the tax authorities. This includes information about accounts, interest income, dividends, capital gains from financial investments, and other financial assets. The information is exchanged automatically between countries.

Participating countries

The AEOI has been widely accepted worldwide and many countries have joined the system to enhance tax transparency and cooperation in the field of tax auditing. However, it is important to note that participation in the program and the exact details of the information exchange are based on bilateral and multilateral agreements between countries. Switzerland has been part of this agreement since January 1, 2017.