According to an article in The Wall Street Journal,Switzerland's cabinet agreed Wednesday to a new plan for resolving disputes between the country's banks and U.S. authorities cracking down on offshore tax evasion, raising hopes the long dispute could be drawing to a close.
The Federal Council said it had designed a broad framework that would allow Swiss banks to cooperate with U.S. authorities investigating possible tax evasion by wealthy Americans. Banks would apply individually for permission to work with U.S. authorities to resolve tax disputes, according to the statement.
The plan doesn't allow Swiss banks to pass client information on to U.S. authorities, but does allow banks to provide information on accounts that were moved to other institutions, as well as details regarding bank personnel, attorneys and accountants. The plan calls for protection of bank employees and third parties.
With Wednesday's announcement, Swiss politicians have indicated they still hope to provide a framework for many of the country's more than 300 banks to settle matters with U.S. authorities.
The Swiss Bankers' Association said it welcomed the outcome, saying it would "finally create legal certainty" for Swiss banks.
