The European Commission (EC) wants the same level of access to information as Switzerland has promised the United States under its FATCA agreement.
What is FATCA? :https://franhendy.com/2012/05/10/10-fast-facts-about-fatca/
The Swiss however remain steadfast in their opposition to extending similar treatment to its European neighbours.
According to European Union (EU) Tax Commissioner Algirdas Semeta, speaking in Le Temps newspaper, there are seven Swiss fiscal regimes – three cantonal and four federal – which are ‘problematic’ for Europe.
Importantly, Semeta does not believe that the ‘Rubik’ deals that the Swiss government have negotiated with a few EU members are compatible with European transparency principles.
Simply put though these ‘Rubiks’ allow the Swiss to remit a ‘withholding’ tax on assets held in their banks to the countries of which the account holders are taxpayers but without exchanging information on those bank account holders.
According to one commentator it is possible that the EU ‘blacklist’ could take the form of an EU member refusing to allow any corproation to deduct an expense for tax purposes if the expense originates in Switzerland.
The EC seems prepared to pave the way for the application of ‘defensive measures’ like a blacklist against Switzerland in six months if it fails to improve its tax practices.
The Question is…?
How much time will Europe afford other FATCA-signatories, including those Offshore Financial Centres (OFCs) queing up to offer the US automatic access to information far beyond what they have offered to Europe under various bilateral agreements manadated by the OECD Global Forum, before they too are threatened with ‘blacklisting’.
Who is negotiating with the US?: https://franhendy.com/2012/11/13/ofcs-rush-to-negotiate-fatca-agreements-with-the-us-3/