The automatic exchange of information - Part 1: what is it and what is its purpose?

Since January 1, 2017, the legal bases have been in force in Switzerland that enable automatic information exchange. This introduces a global standard that is intended to help combat cross-border tax evasion. Findea explains in a three-part series what the reasons, goals, and purposes are (Part 1); what information is exchanged by whom exactly (Part 2); and which institutions are affected, as well as which contracting partners Switzerland has (Part 3).

What is the automatic information exchange?

‍The automatic information exchange was developed in the aftermath of the economic crisis of 2007/2008. The crisis strengthened international efforts to jointly combat cross-border tax evasion. The OECD and the G20 states, in particular, advocated for greater transparency in this context. This resulted in a model agreement adopted by the OECD in 2014. The aim is to introduce the automatic information exchange globally and to apply the same rules for all involved. In Switzerland, the legal foundations were adopted during the winter session of 2015. These have been in force since January 1, 2017.

‍What are the goals?

‍The automatic information exchange is intended to create a global standard for transparency. In the future, it would automatically exchange between contracting states the information necessary to prosecute tax evaders who deposit their money abroad.

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