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Switzerland concludes tax deal with Britain

Switzerland and Britain have concluded a tax deal to regularise any hidden assets held by British taxpayers in the alpine state, the Swiss Finance Ministry said in a statement Wednesday.

Switzerland concludes tax deal with Britain
Michael Faes

In future, investment income and capital gains arising from these assets would also be covered by a final withholding tax, at a rate of between 27 and 48 percent.  

Swiss banks would pay 500 million francs ($629 million) to British tax authorities, a sum which would be offset by any voluntary payments by British taxpayers.  

“Today in Zurich, British and Swiss negotiators concluded the negotiations on outstanding tax issues and initialled a tax agreement,” said the ministry.  

“Under this agreement, persons resident in the United Kingdom can retrospectively tax their existing banking relationships in Switzerland either by making a one-off tax payment or by disclosing their accounts,” it added.  

Those who choose to make an anonymous lump-sum payment would be subject to a tax rate of between 19 to 34 percent of the assets. The magnitude of the tax rate would depend on the duration of the account held in Switzerland, as well as the sum of capital.  

The deal is largely similar to another accord struck between Switzerland and Germany on August 10, which also allows German taxpayers to regularise their hidden assets through a one-off lump sum tax payment at the same rates.  

In addition, like the German deal, to prevent new undeclared funds from entering Swiss banks, British authorities would be able to request information on suspected tax cheats.  

The number of requests made “will be in the low to mid-hundreds and not exceed 500 per year,” said the finance ministry.  

With Wednesday’s deal, Britain has also said it does not envisage buying any stolen bank client data in order to snare tax cheats, claimed Bern.  

“The two agreements with Germany and the UK show that Switzerland is serious about implementing its white money strategy,” said Finance Minister Eveline Widmer-Schlumpf.  

“This creates legal certainty and will strengthen the competitiveness and the reputation of Switzerland as a financial centre in the long term,” she added.  

The Swiss Bankers Association welcomed the deal.  

“As a banker, I am especially grateful that clients have been offered a fair solution for regularising their assets,” said Patrick Odier, chairman of the association.  

Unconfirmed estimates of British assets hidden in Switzerland range from 59.6 billion francs to 162 billion francs.  

Switzerland came under intense pressure over its banking secrecy rules following the financial crisis, as governments, reeling in debt, sought to recover taxes from assets hidden by their citizens in Swiss banks.  

Facing a threat from the OECD to put it on a tax haven blacklist, Switzerland finally moved to ease banking secrecy by negotiating several deals with countries to offer cooperation to root out tax evaders.

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‘No exceptions’: Italy and UK warn England fans against travel to Rome for Euro quarter final

The Italian government on Wednesday reminded England fans not to travel to Rome for Saturday's Euro 2020 quarter final match against Ukraine amid ongoing coronavirus travel restrictions.

‘No exceptions’: Italy and UK warn England fans against travel to Rome for Euro quarter final
Photo: Oli Scarff/AFP

Italy is expected to increase checks and strictly enforce its quarantine rules amid concerns that thousands of people could arrive in Rome from the UK for the match despite the country’s travel restrictions.

All arrivals in Italy from the UK have to quarantine for five days and take two coronavirus tests under current health measures – but there are reportedly concerns that some fans will be unaware of the rules.

EXPLAINED: How has Italy changed its rules on travel from the UK? 

“I am clear and unequivocal – the English fans will not be able to come to Italy to watch the match at the Olimpico against Ukraine on July 3rd,” Andrea Costa, a junior Italian health minister, told Radio Kiss Kiss Napoli on Wednesday.

“There are five days of quarantine, the rule must be respected. We cannot take risks. If an English fan leaves today, he won’t see the game. Same for those who left yesterday.”

The Italian Embassy in London also said in posts on its social media channels on Wednesday that “Fans travelling to Euro 2020 matches are not exempted” from Italy’s quarantine rules.

Meanwhile, UK Trade Minister Anne Marie Trevelyan said: “our request is to support the national team from your home, to cheer in front of the TV as loud as you can”.

Italy’s Interior Ministry is reportedly planning to step up police checks at airports and train stations and road checkpoints in case fans attempt to travel, Italian news agency Ansa reports.

Ansa cited government sources who said the quarantine rules “will be enforced to the letter” and “no exceptions will be granted”.

Photo: JUSTIN TALLIS/POOL/AFP
 
England fans living in Italy on Wednesday were scrambling to buy tickets for the match after the FA stated that it aimed to “facilitate as many ticket sales to English residents in Italy as possible” while fans in the UK were unable to travel.

Dozens of readers contacted The Local on Wednesday asking where they could get tickets, after UK media reports stated that the British Embassy would be distributing them.

The FA had stated that it was “working with Uefa and the British embassy in Italy” to facilitate sales.

However, the British Embassy in Rome confirmed to The Local on Wednesday morning that it “is not selling or distributing tickets for the match on Saturday in Rome”.

READ ALSO: Bars, house parties and fan zones: Where and how can you watch Euro 2020 matches in Italy?

The British Embassy said in a statement to The Local: “Under the UK Government’s traffic light system Italy is currently listed as an amber country.

“The UK Government’s travel advice clearly states that fans should not travel to red and amber countries to protect public health in the UK from new Covid variants.

“The Italian authorities are responsible for setting and enforcing the rules for entry into Italy. Its current guidance states that from June 21st, people travelling from the UK or those who have been in the UK in the previous 14 days must self-isolate for 5 days upon arrival in Italy, after which they must take a rapid antigenic or molecular swab test for Covid-19 and test negative for release.

“This means that fans travelling from the UK to Italy after June 28th will not arrive in time to be able to watch the Euro 2020 quarter-final in Rome on July 3rd 2021.”

Britain is experiencing a surge in new coronavirus cases, blamed on the Delta variant that was first detected in India.

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