• Germany's news in English
 
app_header_v3

Bundesrat blocks Swiss-German tax deal

The Local · 23 Nov 2012, 11:52

Published: 23 Nov 2012 11:52 GMT+01:00

The deal negotiated by Berlin and Bern would see Swiss banks deduct taxes from German clients and transfer the tax revenues to Berlin, allowing the clients to remain anonymous.

It was due to take effect in January 2013 but needs to be ratified by both parliamentary chambers.

Germany's lower house has already approved it but members of the opposition in the upper house, the Bundesrat, had already threatened to block the deal which they see as being too soft on tax-dodgers.

Finance Minister of North Rhine-Westphalia Norbert Walter-Borjans, of the main opposition Social Democrats, told the Bundesrat it was a deal which made "honest taxpayers feel like fools".

But German Finance Minister Wolfgang Schäuble called for backing for the

deal, saying: "The agreement tries to find a better solution for a situation

which is unsatisfactory."

Neighbours Germany and Switzerland have been embroiled in a spat over tax since 2010 when German authorities raided branches of Credit Suisse bank in 13 German cities after buying data on suspected tax frauds.

Story continues below…

Switzerland reacted angrily, saying the data were stolen in violation of its banking secrecy laws. As much as €180 billion in German assets are hidden in Switzerland, according to unconfirmed media reports.

AFP/bk

The Local (news@thelocal.de)

Your comments about this article

13:32 November 23, 2012 by bwjijsdtd
Well, I wonder where Michael Schumaker will move to now? But then again, that may have all been bluster to get his name in the paper ... I have an extra suitcase if you need it Michael ...
17:44 November 23, 2012 by sonriete
If the money is in Swiss banks, why dont they just charge them Swiss tax on it? And if Swiss citizens money is in Germany, have them pay German tax. That is what seems fair to me. Why would one country have the right to tax money that is not even in their jurisdiction?
Today's headlines
Munich shooting
Munich gunman inspired by rightwing Breivik: police
Photo: DPA

The lone teenager who shot dead nine people in a gun rampage in Munich was "obsessed" with mass killers such as Norwegian rightwing fanatic Anders Behring Breivik and had no links to the Islamic State group, police said Saturday.

Munich shooting
Turks, Kosovans and a Greek among shooting victims
Photo: DPA

Three Turkish citizens were among the nine people killed in Germany's Munich mall shooting. Three Kosovans were also among the nine victims.

Munich shooting
Munich gunman was likely not Isis terrorist: police
Flowers laid at the Olympia Shopping Centre underground station. Photo: DPA

According to initial investigations by Munich police, the young man who went on a shooting rampage in Munich on Friday evening was a lone gunman without motive, not a terrorist.

Munich shooting
'Lone' Munich shooter kills nine, commits suicide
Photo: DPA

A teenage German-Iranian gunman who killed nine people in a shooting spree at a busy Munich shopping centre and then committed suicide had likely acted alone, German police said Saturday.

As it happened
Nine dead in shooting rampage in Munich
File photo: DPA

Nine people are dead after "at least one person" went on a shooting spree in a Munich shopping centre on Friday evening. An attacker is believed to be among the dead.

German Turkish community split by unrest after coup plot
Pro-Erdogan protesters in Berlin. Photo: DPA

Hatred between supporters of President Recep Tayyip Erdogan and those opposed to him has exploded on social media in Germany in the wake of a failed coup attempt last Friday.

Germany stresses defence of Baltics after Trump comments
Photo: DPA

Germany on Friday stressed its promise to protect its NATO allies after White House hopeful Donald Trump called the commitment into question.

Three quarters of Germans fear terror attack 'soon'
Police guard a football stadium. Photo: DPA

The figure has shot up from 69 percent just two weeks ago.

Starving stork is unexpected customer at pharmacy
Photo: DPA

Was it on a mission to deliver the morning-after pill instead of babies?

Anti-drugs campaign is Scientology in disguise: spies
The Church of Scientology's German headquarters in Berlin. Photo: DPA

The controversial church is considered an "anti-constitutional sect" in Germany.

Sponsored Article
Why you should attend an international job fair
Analysis & Opinion
Nice was an attack on France, not on Germany
Sponsored Article
Avoid hidden fees when sending money overseas
National
Bavaria train attack: Were police right to shoot to kill?
National
How to get German citizenship (or just stay forever)
Sponsored Article
Why Swiss hospitality graduates are in demand
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Sponsored Article
Five things Americans should know about voting abroad
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Travel
These 10 little-known German towns are a must see
Sponsored Article
Why expats choose international health insurance
Features
How two gay dads cut through German red tape to start a family
National
Five things to know about guns in Germany
Sponsored Article
Health insurance for expats in Germany: a quick guide
Culture
10 things you need to know before attending a German wedding
Sponsored Article
Avoid hidden fees when sending money overseas
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Society
Only one country likes getting naked on the beach more than Germany
Sponsored Article
Why Swiss hospitality graduates are in demand
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Culture
8 German words that perfectly sum up your 20s
Sponsored Article
Why you should attend an international job fair
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
10,799
jobs available
Toytown Germany
Germany's English-speaking crowd