Swiss trusts lobby defends sector after Offshore Leaks

11th April 2013, Comments 0 comments

With its members in the spotlight amid the Offshore Leaks release of a millions of documents about cash stashed in tax havens, Switzerland's trust-company lobby on Tuesday insisted its sector's business was legitimate.

"Over centuries trusts have been used as efficient and flexible instruments, as valid solutions for both personal as well as commercial issues," the Swiss Association of Trust Companies said in a statement, adding that its goals was to "safeguard the integrity of the sector in Switzerland".

"Trusts and companies are predominantly used in perfectly appropriate and compliant ways by people with legitimate intentions, but obviously also can be misused by people with dishonest objectives," the association said.

"The tax treatment of assets held through a trust is often wrongly considered to be a central reason for the creation of a trust, though in reality it is more a consequence to be examined on a case by case basis depending on the respective residence of the settlor/beneficiaries," it added.

Trusts, rooted in English common law, are entities which enable the separation of an owner of assets from a beneficiary via the intermediary of an administrator.

Critics have long claimed that such a system smooths the way for tax-dodgers, swindlers and others involved in shady financial dealings to hide their money.

Over recent days, prominent newspapers around the world have published copies of the data received from the Washington-based International Consortium of Investigative Journalists, spotlighting names on the globe's rich list.

The consortium obtained 2.5 million records of more than 120,000 companies and trusts set up by two offshore companies operating in the British Virgin Islands and in Asia and the South Pacific on a hard drive after investigating a fraud and offshore haven case in Australia.

© 2013 AFP

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