FATCA IGA and Application Law Approved by Swiss Parliament

L’accord fiscal avec les Etats-Unis passe le cap du National

The taxation agreement on FATCA between Switzerland and the US that would prevent American taxpayers from avoiding the [IRS] was accepted Monday by the National Council [lower house of Parliament] by 112 to 51.

Accounts held in Switzerland by American taxpayers should no longer escape the IRS. By 112 votes to 51 and 21 abstentions, the National Council passed the FATCA agreement Monday. The bill returns to the Council of States [Senate] for a minor divergence regarding the [date?] of entry into force.

The American law called FATCA was to be in effect from next January. The agreement [IGA] and its [Swiss] enforcement law… was prepared in view of this [date]. In the meantime, Washington made it known that the new rules would be applicable only from July 2014.

Past not yet dealt with.

With this treaty, Switzerland should be able to put an end to the taxation conflict with the United States. But only for future taxation of American accounts.

In order to draw a line through the past, certain banks must await the verdict of the American court system, and others must resort to a program concocted by [Washington] which would essentially put them at risk for significant fines and [require] transmission of data to [the IRS].

My assumption here is that the Swiss enforcement law is being returned to the Senate in order to change the effective date to July 2014, but I am not certain. Please see text of the enforcement law and previous discussions here at IBS: Discussions on Swiss Senate Approval of FATCA and SIF page

Here are some direct links cited on aforesaid IBS post, dating back to the June approval of FATCA and Swiss enforcement law by the Senate:

Proposed Federal Law (French): Proposed Enforcement Law

Text of the IGA (English): IGA

Text of the IGA (French): IGA-French

Report (French): Report

What really upsets me is that we had heard in the news that the debate on FATCA would go to the lower house in November. Also, I am wondering if anyone in either house of the Swiss Parliament knows that a drive for repeal is under way. The RTS article does not mention bone fide residents of Switzerland or neighboring countries. Again, our plight is ignored by the press.

Please everyone, write to RTS and other Swiss news agencies to remind them of who this will affect.

One thought on “FATCA IGA and Application Law Approved by Swiss Parliament

  1. Jeff: You must have been posting this thread yesterday around the same time I posted the thread about the Two Person Protest.

    I’m sorry I just now saw it. This must be horrific for you and others in Switzerland.

    Are you able to have a bank account now?

    I would encourage any others in Switzerland to do as Jefferson has suggested and write to RTS and others.

    Here is an article on this from today’s The Local in Switzerland

    http://www.thelocal.ch/20130910/swiss-backing-of-fatca-devastates-finance-sector

    Jefferson, it’s good to have you posting here again. It’s been a long time. However, I’m very sorry it is not under better circumstances for you.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Optionally add an image (JPEG only)