For a Century, the Swiss have knowingly provided havens for Money Deposits of the Wealthy  to avoid paying Taxes. Recently the USA broke through that veil of secrecy, brought similar deals with Germany and Britain, that prompted  Italy and France to follow suit. 

Italy and France are likely to be the next two countries to reach deals with Switzerland over bank secrecy, a top Swiss banker was quoted as saying Sunday.

The chairman of the Swiss Bankers Association, Patrick Odier, told weekly NZZ am Sonntag that Italy and France have shown interest in deals like ones Switzerland signed this week with Germany and Britain.

"I expect that France and Italy, with whom we have already had preliminary talks, have an interest in better understanding what Switzerland has to offer," Odier was quotes and saying.

The deals are broadly aimed at preventing companies and individuals from being taxed twice, and they also makes it easier to obtain information on suspected tax cheats hiding assets in secret Swiss bank accounts. Germany was especially vocal in accusing Switzerland of shielding tax cheats.

Germany and Switzerland also agreed to work toward a solution for legacy assets, or money already deposited into Swiss accounts prior to the deal.

Switzerland has proposed a special withholding tax on such assets that would allow account owners to remain anonymous and therefore escape prosecution. Swiss media have reported that such a tax could earn Germany a windfall of several billion euros.

Odier said it was too early to determine how much money would flow out of Switzerland as a result of such deals, but he said that the Swiss banking industry's reputation for wealth management would secure its future.

He cited the case of Italy's tax amnesty last year that saw billions flow back to Italy as a precedent.

"First the money flowed out of Switzerland, and later it came back. Customers wanted to have their money conform with tax laws. The money came back because Switzerland is more stable, competent and secure," Odier said.

http://www.businessweek.com/ap/financialnews/D9J6ONGO0.htm
 

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