The end of the Swiss bank secrecy
Today’s agreement between the European Commission and the government of the small country is not the first of its genre. We have seen similar agreements also in the past between different countries of the EU and the Swiss government. This time it seems to be a little different. According to the official statement released by the commission, it will be full transparency with automatically exchange information. This means that the tax institutions of every country belonging to the EU can have specified information about its nationals that have an account in Switzerland. One of the most famous bank secrecy in the world now is at the terminus.
You might have missed the beauty of the agreement. This new deal will enter into force starting from 2018. This also means that the tax evaders dispose about 2 years and a half to take away their money. Can you guess where they can send it? In another fiscal paradise. We also heard from the commission that they are working hard to reach a similar agreement also with some other European countries for long time considered fiscal paradises like Andorra, Monaco, San Marino.
It’s not so difficult to understand that for as long as will exist the “king cash”, tax evaders will always find another fiscal paradise to hide the money. It doesn’t matter if it’s in Europe or elsewhere, the world is a little place.
If we really want to fight tax evasion we must follow the advises of Citigroup. This prestigious financial institution has undertaken an initiative to abolish the cash. Other banks and nonprofit organizations are supporting the cause. Bank secrecy is not the final solution. A world without cash might be. Already we live In a globalized world and the only way to see benefits from such kind of decisions is to act globally. Citigroup knows it.