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Italy, Switzerland near accord on tax information sharing

Published 15/01/2015, 15:34
Italy, Switzerland near accord on tax information sharing

ROME (Reuters) - Italy and Switzerland have reached a preliminary accord on tax information sharing as part of a drive to combat tax evasion, a senior Italian official said on Thursday, adding that an agreement should be signed by mid-February.

The accord would be a major step towards a wider tax deal the two countries have been negotiating since 2012.

"We have an agreement, it should be signed around the middle of next month," Vieri Ceriani, the head of Italy's negotiating team, told reporters in Rome.

Pressure on countries to share information to limit tax evasion through secret bank accounts has grown in recent years as public finances have been strained by weak economic growth.

Last year 51 countries signed an agreement coordinated by the Organisation for Economic Cooperation and Development to swap information automatically.

Switzerland was not part of that deal but it has separately reached tax agreements recently with Britain and Austria.

Other issues still remain to be agreed for a full deal between Rome and Berne, including removing Switzerland from the Italian "black list" of countries that do not fully cooperate on tax evasion.

In addition, the two sides must settle questions over the taxation of cross-border workers and an Italian casino on the Swiss side of Lake Lugano.

Italy has a chronic problem with tax evasion, which is estimated to cost the Treasury as much as 91 billion euros (69.65 billion pounds) a year. Switzerland has long been a favoured destination for Italians looking to hide funds abroad.

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