The automatic exchange of information - Part 3: with whom the information is exchanged

Since January 1, 2017, legal foundations have been in place in Switzerland which enable automatic exchange of information. This introduces a global standard designed to help combat cross-border tax evasion. Findea explains in a three-part series what exactly this means. In this last part, the contractual partners of Switzerland are described, and how the automatic exchange of information takes place.

The Contractual Partners

‍The OECD presented the model agreement in July 2014, which aims to implement the automatic exchange of information globally. Meanwhile, about 100 states have committed to adopting this new standard. This includes major competitors of the Swiss financial center such as London, Hong Kong, or Singapore. The specific countries with which Switzerland has concluded the agreement can be seen on the Federal website. Switzerland started gathering data for the first time in 2017. The actual exchange of information will take place with certain partners for the first time in 2018.

‍How does the automatic information exchange work?

‍The automatic exchange of information only applies to cross-border matters. This is the case when someone domiciled in Country A has an account in Country B. The bank in Country B then independently collects the information that was presented in Part 2 of this series. This information is then transmitted to the competent tax authority in Country B. In Switzerland, this is the Federal Tax Administration. These collect the information and automatically forward it to Country A.

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