SWITZERLAND Law and Practice Contributed by: Joseph Merhai, Thomas Pasquier and Laurent Schenker, Aegis
7.2 Exchange of Information Clauses in Tax Agreements Switzerland exchanges tax information in automatic, spontaneous and on-request formats, based on the applicable treaty or multilateral framework and the corresponding Swiss implementing rules (See 7.1 Legal Framework for Administrative Co-Operation ). Automatic Exchange (AEOI/CRS and Similar Frameworks) Switzerland applies the global standard for the auto - matic exchange of information on financial accounts (AEOI/CRS), primarily via the MCAA; with the EU, AEOI is implemented through a bilateral agreement. The Swiss legal bases for AEOI (including the Conven - tion, the MCAA and the Swiss implementing law) have been in force since 1 January 2017, and the system provides for regular exchanges with partner jurisdic - tions that have an activated exchange relationship. Exchange on Request Switzerland grants administrative assistance on request under exchange-of-information clauses in DTAs/TIEAs and under the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, implemented domestically through the Swiss frame - work for international administrative assistance. Swiss practice is built around the standard that information is provided in response to a duly substantiated request (ie, no “fishing expeditions”). Spontaneous Exchange Switzerland also exchanges information spontane - ously in defined situations, notably in relation to cer - tain tax rulings/advance rulings. Switzerland has been exchanging information on relevant tax rulings since 2018, and performs such exchanges with partner jurisdictions in practice. Overall, these mechanisms allow Swiss authorities to obtain information from partner jurisdictions and, conversely, to transmit information where the applica - ble framework provides for it, thereby strengthening transparency and enforcement in cross-border situ - ations.
suggesting tax fraud or another tax offence. Co-ordi - nation is achieved through the division between tax authorities, which initiate the complaint and handle the tax assessment aspects, and the public prosecu - tor and criminal courts, which conduct and determine the criminal proceedings. 7. Administrative Co-Operation 7.1 Legal Framework for Administrative Co- Operation In Switzerland, administrative co-operation in tax matters is largely treaty-based and relies on a mix of bilateral and multilateral instruments, supplemented by domestic implementing laws. Key legal bases include the following. • DTAs generally include an exchange-of-information on request clause, as well as dispute resolution mechanisms. • Tax information exchange agreements (TIEAs/ AERF) and the OECD/Council of Europe Conven - tion on Mutual Administrative Assistance in Tax Matters also support exchange on request. • The same multilateral Convention also provides the framework for spontaneous exchange of informa - tion (Article 7), which has been applicable in Swit - zerland for spontaneous exchange purposes for tax periods starting from 1 January 2018 (with the Convention in force for Switzerland since 1 January 2017). • Automatic exchange of information (AEOI/CRS) on financial accounts is implemented mainly via the Multilateral Competent Authority Agreement (MCAA). With the EU, AEOI is implemented via a bilateral agreement (ie, not through EU directives). The Swiss legal bases have been in force since 1 January 2017. • Country-by-country reporting (CbCR) exchange is implemented through the multilateral competent authority agreement and the corresponding Swiss implementing law and ordinance (in force since 1 December 2017).
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