Switzerland agreed on Friday to relax its strict bank secrecy rules and co-operate more on tax evasion in a last-ditch attempt to fend off a global crackdown on tax havens that is rattling the offshore banking industry.
The upcoming meeting of the Group of 20 developed and emerging nations in which they are due to discuss tax havens prompted Switzerland, Austria and Luxembourg on Friday to follow recent moves by other offshore centres and offer more tax transparency.
In a landmark statement, the Swiss government said it would embrace standards for tax cooperation and exchange of information set by the Organisation for Economic Cooperation and Development, meaning more information on suspected tax evaders will be shared with other countries.
?Banking secrecy does not protect tax crimes. International cooperation on taxes has become more important given the globalisation of financial markets and in particular against the background of the financial crisis,? Swiss president and finance minister Hans-Rudolf Merz told a news conference.
Switzerland will not drop bank secrecy altogether and will only pass on information following detailed requests on individual cases from other countries.
?There will be no automatic exchange of information,? Mr Merz said.
