To unblock the stalled negotiations for a double taxation agreement (DTA) between Italy and Switzerland, an attempt has been made, during a meeting organised by the Italian Senate’s Foreign Affairs Committee. In fact, there has been a confrontation between Italy and Switzerland over the signature of a revised bilateral DTA for some two years.
The Italian government was firmly against any such tax treaty until Switzerland lifts bank secrecy completely, and until there can be an automatic exchange of information about bank clients between the two countries. Switzerland will remain in Italy’s blacklist of tax haven until they agree to Italy’s point and will continue to be affected under Italy’s new value-added tax disclosure regulations earlier this year.
Swiss tax agreements with Germany and the United Kingdom have been referred to use to kick-start fresh negotiations with Switzerland. It has also been suggested that a regular payment of tax on existing amounts in bank accounts in Switzerland, together with rules for future tax payments on capital gains, dividends or interest from such accounts, could also provide the platform for an Italian-Swiss pact.
