GENEVA, Switzerland (PNN) - June 15, 2010 - The Swiss parliament on Tuesday approved a treaty with the United States that will hand thousands of files on suspected tax cheats to U.S. authorities, but obstacles remain that could delay the deal for several more months.
The government hopes the agreement will eventually end UBS AG's three-year battle with U.S. tax authorities that culminated in revelations the bank had for years helped Amerikan clients hide millions of dollars in offshore accounts.
Under the treaty that was painstakingly crafted by Bern and Washington last year after months of negotiations, Switzerland has agreed to divulge the names of 4,450 UBS clients suspected of tax evasion.
Swiss authorities have already transmitted the names of about 400 UBS clients who signed waivers as part of the Internal Revenue Service's voluntary disclosure program, according to the Swiss Federal Tax Administration. A further 100 UBS clients gave their consent directly to Swiss authorities.
Lawmakers in Switzerland's lower house voted 81 to 61 in favor of the government-backed deal, and 53 abstained.
The vote passed after the powerful Swiss People's Party dropped its opposition. The nationalist party and the left-wing Social Democrats blocked a first attempt last week to have parliament approve the treaty, which has been correctly portrayed by some as a nail in the coffin for Swiss banking secrecy.
