Aust, Switzerland to target tax evasion

Australia and Switzerland have signed a deal to swap banking information in a bid to crack down on tax evasion.

James Bond hasn’t been kind to Switzerland.

Swiss ambassador to Australia Marcel Stutz is keen to counter the image of his country being the preferred banker for baddies.

Mr Stutz and Treasurer Joe Hockey on Tuesday signed an agreement in Canberra to increase co-operation in tackling tax evasion.

“One of the problems with James Bond is … if the bad guys have to put the money somewhere, they put it in Switzerland,” the ambassador said.

Mr Hockey said it was not only a perception but a reality in the case of Australia’s Securency scandal, which involved money being illegally wired to Swiss accounts held by Asian government officials.

Under the agreement, the Australian Taxation Office will automatically receive details of financial accounts, such as investment income and balances, that Australians hold in Switzerland, and use it to check against the income declared in Australian tax returns.

The Swiss Federal Tax Administration will receive details of Swiss residents that hold financial accounts in Australia.

“Previously hidden offshore income will be exposed,” Mr Hockey said.

“There will be nowhere to hide.”

The information swap will be based on the OECD’s common reporting standard and starts in 2018.