Italy signs treaty with Switzerland to tackle tax evasion

Italian Economy Minister Pier Carlo Padoan on Monday signed a treaty with his Swiss counterpart Eveline Widmer-Schlumpf which marks the end of bank secrecy and helps identify potential tax evaders.

The treaty, signed in Milan, breaks the principle of client privacy that has permitted the creation of deposits used to dodge taxes for decades, a statement from the Italian economy ministry said.

Italian authorities will be able to ask information about hidden assets in Switzerland, in line with the standards of the Organization for Economic Development and Co-operation (OECD), and encourage their voluntary repatriation.

Therefore Switzerland will be removed from Italy's blacklist of tax havens, the statement added. Endit