Resolution of Swiss tax dispute draws nearer
The twelve month deadlock between the European Commission and Swiss tax authorities looks set to reach a compromise deal.
The long-standing problems concern the opening up of the Berne banking system in order to cut down on tax evasion and fraud. The UK government has been extremely vocal in the argument and Gordon Brown is expected to continue this trend at a meeting of EU finance ministers next week.
It is the last scheduled meeting before the December deadline for an agreement on savings taxation.
The compromise would mean that Berne will levy a withholding tax of up to 35% on EU residents savings held in Swiss bank accounts, reports the Financial Times.
Over two-thirds of the proceedings would then go to the EU state where the saver resides. The Swiss will keep the rest.