Swiss sign tax treaty with Denmark

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Switzerland on Friday signed a revised dual taxation agreement with Denmark, the first to meet tougher international standards.

Geneva -- Switzerland on Friday signed a revised dual taxation agreement with Denmark, the first of its kind to comply with tougher international standards on information exchanges, Swiss authorities said.

"Denmark is the first country with which Switzerland has signed an (agreement) containing the extended administrative assistance clause in accordance with... the OECD Model Convention," the Swiss finance ministry said in a statement.

Switzerland is aiming to sign 13 dual taxation agreements of the kind in order to be removed from the Organisation for Economic Cooperation and Development's "grey list" of countries that are still not fully compliant.

Swiss officials have already initialled -- a step before signing -- 12 similar agreements with Austria, Britain, Finland, France, Japan, Luxembourg, Mexico, the Netherlands, Norway, Poland, Qatar and the United States.

Bern on Friday also announced the start of negotiations on a revised dual taxation treaty with Germany on 8 September.

Germany is a leading critic of Swiss banking secrecy, complaining that it encourages German taxpayers to hide funds across the border in Switzerland.

The pressure was increased by the G20 group of leading economies this year as a result of the financial crisis.

They demanded that countries like Switzerland meet OECD standards that ease exchange of information for cases of tax fraud.

Many Swiss experts also believe the revised tax treaties represent a further loosening of the country's banking secrecy.

AFP / Expatica

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