Switzerland and the UK signed a declaration on the initiation of negotiations concerning tax issues between the two countries.

By signing the joint declaration, the Swiss Finance Minister and Exchequer Secretary have agreed to initiate negotiations on the expansion of cross-border cooperation in tax matters and improved market access for banks.

As reported, Switzerland and the UK are confident that the negotiations will lead to a fair and lasting solution in the interests of both states. Both sides agree that a new solution will avoid distortions to competition in terms of tax issues. UK taxpayers should not be deterred from holding a bank account in Switzerland. In future, however, the possible risk of tax evasion should not impact on the investment decisions of UK taxpayers.

Negotiations are expected to commence at the beginning of 2011. The outcome of the negotiations will then be submitted to parliament.

The complete press release on these negotiations is available at http://www.admin.ch/aktuell/00089/index.html?lang=en&msg-id=35860