Tag Archives: Tax Treaty

Sharing Global Information To Curb Financial Tax Evasion

Global Tax Treaty

People usually have the right to get a foreign account for themselves to make the savings and the information about the account will not be given to anyone. This makes people to have all the information safe but they in turn have to pay tax for even a foreign account. In such cases, it is imprinted to know that people can make use of the system where the company or the financial place like bank can share its information with the government so that the tax paid to them will be reduced.  Out of all the nations, only the leading nation has decided to have the facility to get and share all the financial information from one country to another to know about all the account holders of the country who have an account in foreign back. Though this sounds good as people need not have to pay the tax to set an account in a foreign country, they might get into a problem as they will be having money which might need to pay the income tax for their own country.

The work has been signed by countries like UK with USA but the only country staying out currently is Switzerland as they state that the information should be secured in the bank and giving out the information might lead to customer dissatisfaction. The Organization for Economic Operation and Development which involves 34 nations in it says it is important to give the information and keep a clear flow of the information so that individuals won’t have to pay the tax for having an account in any country.  But Switzerland has a differing opinion. They say that they won’t bow to this deal as the customers of the bank or other financial places have their account as they find them to be more secure and exchange of information might make them less the confidence in these people. The other aspect is that the Swiss law makes has refused the deal and says they don’t like to bow to any of USA deals.