It has been published on 4 November 2013 that, Germany’s Social Democrats (SPD) have indicated that the party might be prepared to renegotiate the bilateral tax agreement concluded with Switzerland, aimed at resolving the longstanding issue of German residents with undeclared bank accounts held in the Confederation. The SPD and the Green Party blocked the initial tax deal in the German Bundesrat, or upper house of parliament, at the beginning of the year.
The SPD negotiator made it clear that a new treaty between the two countries must be fairer and must serve to close existing tax loopholes. Moreover, the overarching aim of ensuring that the country’s tax authorities gain access to relevant tax information must not be undermined. The Minister underscored that the reason for the failure of the initial text in parliament was the inclusion of provisions guaranteeing anonymity and banning the future purchase of tax data discs.
