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Australia Warns About Scope Of Arrangement With Switzerland Over Accounts

Tom Burroughes

13 March 2014

Australian Treasury officials have an agreement with Switzerland over citizens holding secret bank accounts in the Alpine state, but Australia is powerless in netting tax dodgers who have already closed their accounts, according to the Sydney Morning Herald.

The publication quoted data from the Australian Tax Office stating that about A$41 billion ($36.8 billion) moved between Australia and Switzerland during the last financial year, with the average transaction worth just under A$250,000.

Australia revised its tax treaty with Switzerland in July 2013, signalling the new deal would see Swiss banks and financial institutions hand over on request bank account details relating to Australians.

The report said Treasury officials have told the joint standing committee on treaties that the treaty - once enacted - would only apply to future accounts.

The admission comes as tax authorities around the world face growing pressure to tackle profit shifting and tax evasion by corporates and wealthy individuals.